#11 The Pita Pit borrowed $100,000 on November 1, 2021, and signed a six-month note bearing interest at 12%. Principal and interest are payable in full at maturity on May 1, 2022. In connection with this note the Pita Pit should report: LABEL 11-interest exp 2021 and then 11-interest exp 2022 2 points Interest expense in 2021 in the amount of: Interest expense in 2022 in the amount of: #12 A company purchased a three-acre tract land for a building site for $350,000. The company demolished the old building at a cost of $12,000, but was able to sell scrap from the building for $1,500. The cost of title insurance was $900 and attorney fees for reviewing the contract was $500. Property taxes paid were $3,000, of which $250 covered the period after the purchase date. 7 points The capitalized cost of the land is: LABEL 12 & SHOW WORK for partial credit #13 Research and development costs should be: LABEL #13 2 points A) Expensed in the period incurred. B) Expensed in the period they are determined to be unsuccessful. C) Deferred pending determination of success. D) Expensed if unsuccessful, capitalized if successful. #14 Kansas Enterprises purchased equipment for $60,000 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $5,000 at the end of five years. Using the straight-line method: LABEL 14 "BV 12/31/2021 and then 14 BV 12/31/2025 4 points Compute the book value at December 31, 2021 Compute the book value at the end of its useful life, December 31, 2025