1. Today a firm treated the cash spent on updating a piece of equipment as a Capitalized Addition (not as a regular repairs and maintenance activity). What effect does this transaction have? a. Lowers Total Assets today b. Lowers Depreciation expense today c. Increases Total Liabilities in the future d. Increases Depreciation expense in the future e. Increases Cash from Investing today 2. Which of the following cash costs is immediately expensed under US GAAP? a. Spent $110,000 for salaries of R&D chemical engineers b. Purchased a trademark from a competitor for $50000 c. Spent $100,000 on the construction of a new multi-purpose R&D laboratory d. Acquired a patent valued at $30,000 as part of a $2 million dollar merger e. All of the above 3. A company invested in equity securities of another firm. They purchased