0 2 6 17) Circle Company purchased an asset for $460,000 on April 1, 2018. The estimated salvage value is $60,000, and the estimated useful life is 10 years. The straight-line method is used for depreciation. What is the balance in accumulated depreciation on October 1, 2022 when the asset is sold? 18) Montana Corporation owns machinery with a book value of $600,000. It is estimated that the machinery will generate future cash flows of $520,000. The machinery has a fair value of $480,000. Montana should recognize a loss on impairment of? 19) A company uses the sum-of-the-years'-digits-method of depreciation. Accordingly, the depreciation expense will decrease by the same amount each year during the life of the asset. (True/False) 20) Spruce Corporation acquired a copyright on September 1, 2020. Spruce paid cash of $160,000 to the seller. Legal fees of $12,000 were paid related to the acquisition. What is the book value of the copyright at December 31, 2021 assuming that the copyright has a life of 20 years? 21) Sunshine Company purchased a patent on January 1, 2010 for $700,000. The patent had a remaining useful life of 5 years at that date. In January of 2022, Sunshine successfully defends the patent at a cost of $100,000, extending the patent's life to December 30, 2032. What amount of amortization expense would Sunshine record in 2022? 22) Goodwill should be recorded as an asset at the time of purchase of another company. The amount of the goodwill is the excess of the cost over the fair value of the identifiable net assets purchased. Internally generated goodwill should be recorded as research and development cost as incurred. (True/False)