1.Crane Corporation incurred the following costs in 2021:

Acquisition of R&D equipment with a useful life of
4 years in R&D projects	$780000
Start-up costs incurred when opening a new plant	139000
Advertising expense to introduce a new product	680000
Engineering costs incurred to advance a product to full
production stage	581000

What amount should Crane report as research & development expense in 2021?

$1500000

$1361000

$776000

$1018000

2.Waterway Industries purchased machinery for $1050000 on January 1, 2017. Straight-line depreciation has been recorded based on a $90000 salvage value and a 5-year useful life. The machinery was sold on May 1, 2021 at a gain of $19000. How much cash did Waterway receive from the sale of the machinery?

$222000.

$327000.

$147000.

$237000.