A company sells a plant assets that originally cost exist50,000 on December 31, 2010. The accumulated depreciation account had a balance of exist60,000 after the current year's depreciation of exist15,000 had been recorded. The company should recognize a exist100,000 loss on disposal. exist40,000 gain on disposal. exist40,000 loss on disposal. exist25,000 loss on disposal. Nix Corporation sold equipment for exist12,000. The equipment had an original cost of exist36,000 and accumulated depreciation of exist18,000. Ignorilng the tax effect, as a result of the sale net income will increase exist12,000. net income will increase exist6,000. net income will decrease exist6,000. net income will decrease exist12,000 A patent should be amortized over a period of 20 years. not be amortized be amortized over its useful life or 20 years, whichever is longer. be amortized over its useful life or 20 years, whichever is shorter On July 1, 2010, Linden Company purchased the copyright to Norman Computer Tutorials for exist120,000. It is estimated that the copyright will have a useful life of 5 years. The amount of Amortization Expense recognized for the year 2010 would be exist24,000. exist11, 250. exist22, 200. exist12,000. Research and development costs are classified as intangible assets must be expensed when incurred under generally accepted accounting principles should be included in the cost of the patent they relate to are capitalized and then amortized over a period not to exceed 20 years