Question
1.Crane Corp. incurred $720000 of research and development costs to develop a product for which a patent was granted on January 2, 2018. Legal fees
1.Crane Corp. incurred $720000 of research and development costs to develop a product for which a patent was granted on January 2, 2018. Legal fees and other costs associated with registration of the patent totaled $148000. On March 31, 2021, Crane paid $290000 for legal fees in a successful defense of the patent. The total amount capitalized for the patent through March 31, 2021 should be
$438000.
$868000.
$1158000.
$1010000.
2.
Waterway Industries acquired a tract of land containing an extractable natural resource. Waterway is required by the purchase contract to restore the land to a condition suitable for recreational use after it has extracted the natural resource. Geological surveys estimate that the recoverable reserves will be 5000000 tons, and that the land will have a value of $604000 after restoration. Relevant cost information follows:
Land | $6440000 |
Estimated restoration costs | 1110000 |
If Waterway maintains no inventories of extracted material, what should be the charge to depletion expense per ton of extracted material?
$1.59
$1.51
$1.29
$1.39
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