Focal Point Engineering Purchased a Trademark at the Beginning of 2012

Multiple Choice

Focal Point Engineering purchased a trademark at the beginning of 2012 for $200,000.Although the trademark's legal life is 20 years,economic benefits were expected for only 10 years.Also,during 2012,the company incurred research and development costs of $200,000.The book value of the trademarks at December 31,2012,is

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