38. Cost of design, construction, and operation of a pilot plant not used for commercial production should be allocated to: a. Plant asset b. Equipment Research and development d. Other expenses c. 39. How should internally generated assets be accounted for? Recorded in the same way as purchased intangible assets b. It is not possible to create intangible assets a. They are generally expensed except for legal fees, which are capitalized d. Completed expensed c. 40. If a substantial repair is made to replace a part in a machine due to wear and tear, the expenditure should appear in which general ledger account: a. Accounts receivable b. Depreciation Machinery d. Repairs expense C. Iryna Corp. bought a multiple-bit press costing $1,080,000 with an estimated useful life of 10 year and an estimated salvage value of $90,000. Iryna expects the machine to produce 110,000 units over its lifetime. In year 1 it produced 12,000 units and in year 2 it produced 18,000 units. 41. Using Double-declining-balance method, what is the depreciation expense for year 2? 42. Using Units of production method, what is the depreciation expense in years 1 and 2 43. Using the Sum-of-the-years method, what is the depreciation expense for year 2? 44. Under the straight-line method, what is the depreciation expense in Years 1 and 2 On January, Sheslyne Company issued $6,000,000 of 10 % bonds and received $6,269,160. Interest is payable semi-annually on June 30 and December 31. The bonds mature in 6 years. The straight-line method is used to amortize premiums and discounts. 45. Record the issuance of the bonds on Sheslyne's books 46. Record the first interest payment 47. What the interest expense in year 1 48. Record the maturity of the bonds