project and then used by the production division for an additional 8 years. Wizard uses the straight-line method of depreciation. 31. What amount should Wizard include in 2005 research and development expense? 32. Hull Co. bought a trademark from Roe Corp. on January 1, 2005, for $ 224,000. Hull retained an independent consultant who estimated the trademark ' s remaining useful life to be 20 years. The trademark most likely will not be renewed. Its unamortized cost on Roe ' s accounting records was $ 112,000. In Hull ' s December 31, 2005 Balance Sheet, what amount should be reported as accumulated amortization? 33. A company reported $ 6 million of goodwill in last year ' s statement of financial position. How should the company account for the reported goodwill in the current year?
34. What factor must be present to use the units of production( activity) method of depreciation?
35. Ajax Corp. has an effective tax rate of 30 %. On January 1, 2000, Ajax purchased equipment for $ 100,000. The equipment has a useful life of 10 years. What amount of current tax benefit will Ajax realize during 2000 by using the 150 % declining-balance method of depreciation for tax purposes instead of the straight-line method?
36. 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?
37. Ichor Co. reported equipment with an original cost of $ 379,000 and $ 344,000 and accumulated depreciation of $ 153,000 and $ 128,000, respectively, in its comparative financial statements for the years ended December 31, 2005 and 2004.