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