Focal Point Engineering Purchased a Trademark at the Beginning of 2013

Multiple Choice

Focal Point Engineering purchased a trademark at the beginning of 2013 for $200,000. Although the trademark's legal life is 20 years, economic benefits were expected for only 10 years. Also, during 2013, the company incurred research and development costs of $200,000. The book value of the trademarks at December 31, 2013, is

A) $200,000.
B) $180,000.
C) $175,000.
D) $280,000.