Crane Co. bought a patent from Cullumber Corp. on January 1, 2021, for $897000. An independent consultant retained by Crane estimated that the remaining useful life at January 1, 2021 is 15 years. Its unamortized cost on Cullumber’s accounting records was $448500; the patent had been amortized for 5 years by Cullumber. How much should be amortized for the year ended December 31, 2021 by Crane Co.?

$59800.

$44850.

$89700.

$0.

Sandhill Corporation incurred the following costs in 2021:

Acquisition of R&D equipment with a useful life of
4 years in R&D projects	$960000
Start-up costs incurred when opening a new plant	148000
Advertising expense to introduce a new product	860000
Engineering costs incurred to advance a product to full
production stage	752000

What amount should Sandhill report as research & development expense in 2021?