(Attempt All)

1.On March 1, 2022, Entity A purchased a patent for a new drug for $2,000,000. It is estimated that the patent will have a useful life of 8 years though it has a legal life of 10 years. The amount of amortization expense recognized for the year 2022 would be (round to nearest dollar if necessary)

a.$200,000

b.$166,667

c.$250,000.

d.$208,333

2.Entity B purchased land for a plant site for $75,000. Entity B also paid off a $1,200 lien on the land owed by the seller. Entity B also cleared and graded the land at a cost of $4,000 before commencing construction of its new plant. What was Entity B's cost of the land?

		$80,200.
		$79,000.
		$76,200.
		$75,000.

3.Which of the following items would be considered revenue expenditures that would not be capitalized?

		installation of new electrical system in a building that extends its useful life by ten years.
		addition of a lift on a delivery vehicle that improves its productivity
		ordinary repairs and maintenance.
		successful defense costs of a patent.