Hello,

These are the answers I need ASAP please!!!

1. Swanson Company bought a machine on January 1, 2007. The machine cost $72,000 and had an expected salvage value of $12,000. The life of the machine was estimated to be 5 years.

   The depreciable cost of the machine is

   $72,000

   $60,000

   $20,000

   $12,000

1. Grant Company has decided to change the estimate of the useful life of an asset that has been in service for 2 years. Which of the following statements describes the proper way to revise a useful life estimate?

   Revisions in useful life are permitted if approved by the IRS.

   Retroactive changes must be made to correct previously recorded depreciation.

   Only future years will be affected by the revision.

   Both current and future years will be affected by the revision.

1. If a company incurs legal costs in successfully defending its patent, these costs are recorded by debiting

   Legal Expense.

   the Intangible Loss account.

   the Patent account.

   a revenue expenditure account.