17. Star Co. leases a building for its product showroom. The 10-year non-renewable lease will expire on December 31, 2007. In January 2002, Star redecorated its showroom and made leasehold improvements of $ 48,000. The estimated useful life of the improvements is 8 years. Star uses the straight-line method of amortization. What amount of leasehold improvements, net of amortization, should Star report in its June 30, 2002, Balance Sheet?
18. A company recently acquired a copyright that now has a remaining legal life of 30 years. The copyright initially had a 38-year useful life assigned to it. An analysis of market trends and consumer habits indicated that the copyrighted material will generate positive cash flows for approximately 25 years. What is the remaining useful life, if any, over which the company can amortize the copyright for accounting purposes?
19. Cantor Co. purchased a coal mine for $ 2,000,000. It cost $ 500,000 to prepare the coal mine for the extraction of the coal. It was estimated that 750,000 tons of coal would be extracted from the mine during its useful life. Cantor planned to sell the property for $ 100,000 at the end of its useful life. During the current year, 15,000 tons of coal were extracted and sold. What would Cantor ' s depletion amount be per ton for the current year?
20. On January 1, 2004, Bay Co. acquired a land lease for a 21-year period with no option to renew.
21. During 2005, Kent Co. incurred $ 204,000 of research and development costs in its laboratory to develop a patent that was granted on July 1, 2005. Legal fees and other costs associated with registration of the patent totaled $ 41,000. The estimated economic life of the patent is 10 years. What amount should Kent capitalize for the patent on July 1, 2005?
22. During 2005, Orr Co. incurred the following costs: 23. In its 2005 income statement, what should Orr report as research and development expense?