#22-26. Thank you:)

22. David Inc. incurred the following costs associated with the purchase of a piece of land that it will use to build an office building $500,000 Sale price of land Sale of salvaged material on land Demolition of old building on land Ground breaking ceremony Legal fees to lawyers for the deed 20,000 10,000 refreshments 1,500 7,500 What amount should David Inc. record the land for? 23. Research and development costs should be: 1. Expensed in the period incurred 2. Expensed in the period they are determined to be unsuccessful 3. Deferred pending determination of success 4. Expensed if unsuccessful, capitalized if successful 24. Northern Lights purchased the entire business of Southern Brights, including all of its assets and liabilities for $700,000. Below is information about Southern Brights: Fair value of assets Fair value of liabilities $800,000 $300,000 How much Goodwill should be recorded by Northern Lights? Which of the following intangible assets is not amortized? A. Patents B. Goodwill C. Copyrights D. Franchise fee 25. 26. Western Wholesale Foods incurs several expenditures during the current fiscal year. Indicate how they should be recorded in their financial records: A.expensed or B. capitalized and depreciated? A. Salaries for repair technicians $155,000 B. Remodeling of executive offices $84,000 C. Annual equipment maintenance costs $72,900 D. Replacement of production equipment for increased productivity $38,000 E. Addition of sprinkler system of Manufacturing facility S35,000