1. S-Pilot Company incurred the following costs during 2016:

Design of tools, jigs, molds and dies involving new Technology	$250,000
Modification of the formulation of a process	320,000
Troubleshooting in connection with breakdowns during commercial production	200,000
Adaption of an existing capability to a particular customers need as Part of a continuing commercial activity	220,000

In its 2016 income statement, what expense should S-Pilot report for research and development?

2. Alton Inc. purchased equipment for $20,000 on January 1, 2015. The estimated useful life is 5 years and the residual at the end of the five years is $2,000. Alton uses the double-declining balance depreciation method. What will be the carrying value (book value) at December 31, 2017?

3. A Company on January 1, 2017 purchased B Company at a cost that resulted in recognition of goodwill of $300,000. During the first quarter of 2017, A Company spends an additional $120,000 on expenditures designed to maintain goodwill. In its December 31, 2017 balance sheet, what amount should A Company report as goodwill?

4. Assume a corporation has a cash surrender value of $20,000 at the beginning of the year. During the year, a premium of $100,000 is paid, and the cash surrender value at the end of the year is $32,000.

Required: Record the entry for the premium payment.