3. Question 11 Pablo Corporation purchased a new pickup truck to use in its business. Costs associated with the truck purchase include: Purchase price of the truck $45,000 Sales tax paid on the purchase of the truck 2,700 Painting and lettering the truck 1,200 Maintenance after the truck was purchased 900 Freight charges paid by Pablo for delivery of the truck 600 Two year insurance policy on the truck 2,600 Motor vehicle license tax 100 What is the amount recorded in the Truck account for the new truck? $47.700 $48,900 $49.600 O $49,500 3.45 pts Question 12 In connection with a piece of equipment, if a company expenses a cost that should have been capitalized, the effect would be: Expenses and equipment Casset) will be overstated in the year of the error. Expenses and equipment (asset) will be understated in the year of the error, Expenses will be overstated and equipment (asset) will be understated in the year of the error. Expenses will be understated and equipment Casset) will be overstated in the year of the error Question 19 Which statement below regarding the accounting for intangible assets is correct? Patents are amortized over the shorter of their useful life or legal life. Amortization of intangible assets is credited to the Accumulated Amortization account. The cost of goodwill purchased should be amortized over its useful life. Research and development costs generally are capitalized and amortized over its useful life. The Skelton Company purchased a Chick-fil-A franchise for $1,500,000. The franchise has a legal life per the contract of 25 years, however the Skelton Company believes its useful life is 20 years. The franchise has no salvage value. The annual amortization expense the franchise is: $60,000 $1,500,000 SO $75,000