patent has a life of 20 years. Under U. S. GAAP, what amount should Alta capitalize related to the patent?
2. In 2005, Ball Labs incurred the following costs: 3. What was Ball ' s total research and development expense in 2005? 4. South Co. purchased a machine that was installed and placed in service on January 1, 2004 at a cost of $ 240,000. Salvage value was estimated at $ 40,000. The machine is being depreciated over 10 years by the double declining balance method. For the year ended December 31, 2005, what amount should South report as depreciation expense?
5. A manufacturing firm purchased used equipment for $ 135,000. The original owners estimated that the residual value of the equipment was $ 10,000. The carrying amount of the equipment was $ 120,000 when ownership transferred. The new owners estimate that the expected remaining useful life of the equipment was 10 years, with a salvage value of $ 15,000. What amount represents the depreciable base used by the new owners?
6. After an impairment loss is recognized, the adjusted carrying amount of the intangible asset shall be its new accounting basis. Which of the following statements about subsequent reversal of a previously recognized impairment loss is correct?
7. Northstar Co. acquired a registered trademark for $ 600,000. The trademark has a remaining legal life of five years, but can be renewed every 10 years for a nominal fee. Northstar expects to renew the trademark indefinitely. What amount of amortization expense should Northstar record for the trademark in the current year?
8. Hull Co. bought a trademark from Roe Corp. on January 1, 2005, for $ 224,000.