During the year, a company purchased a patent for $550,000 from another company. Additionally, the company spent $115,000 this year to internally develop a separate invention that they plan to patent once its complete. Which of the following statements is true? $550,000 can be capitalized as a patent $675,000 should be expensed as research and development $115,000 can be capitalized as a patent o $550,000 should be expensed as research and development QUESTION 10 On March 12, 20Y8, a piece of equipment was sold for $33,000 cash. The equipment was originally purchased in 20Y6 for $35,000. To date, it had accumulated depreciation of $5,000. Which of the following is true on the date of disposition? o The building had a net book value of $30,000. A loss on sale of $5,000 should be recorded. A gain on sale of $2,000 should be recorded. The building had a fair market value of $35,000