Ramirez Stores Purchased a Trademark at the Beginning of 2016

Multiple Choice

Ramirez Stores purchased a trademark at the beginning of 2016 for $340,000.Economic benefits were expected for 10 years, but the trademark's legal life was 20 years.Also, during 2016, Ramirez incurred research and development costs of $200,000.The book value of the trademarks at December 31, 2016, is

A) $506,000
B) $306,000
C) $323,000
D) $486,000