14 Choose: How are Research and Development costs recorded and on which statement will they be reported? A. an asset reported on the balance sheet b. an expense reported on the income statement c. a liability reported on the balance sheet d. none of these 21 Choose: Grandfork Company purchased a patent for $32,000 on July 1, 2020. The patent has a life of 8 years, no salvage value. If Grandfork records patent amortization on December 31, 2020, how much Patent Expense will be recorded? a. $32,000 b. $2,000 c. $4,000 d. None of these 22 Choose: Libby Mining purchased an iron mine for $3,000,000. The mine is expected to produce 100,000 tons of iron ore during its life. This year, Libby extracted 20,000 tons of ore. How much depletion expense should Libby record this year? a. $30,000 b. $600,000 c. $3,000,000 d. $300,000 23 Choose: Williams purchased equipment with a cost of $28,000, life of 5 years and salvage value of $3,000. What is the depreciable cost of the equipment? a. $28,000 b. $5,000 C..20 d. $25,000 24 Choose: What is the name of the payroll document published by the Internal Revenue Service that contains the tax rates and withholding information used by payroll managers? a. Your Payroll Pal b. Publication 15 Circular E c. Your Role in Payroll d. 50 Shades of Payroll 25 Choose: Which of the following is an accelerated depreciation method that is used only for tax purposes? a. MACRS b. Straight Line c. Units of Activity Double Declining Balance