need answers to mutiple choice questions answer each questions by selecting only one answer.

1)

Miller, Inc. estimates the cost of its physical inventory at March 31 for use in an interim financial statement. The rate of markup on cost is 25%. The following account balances are available: Inventory, March 1 $220,000 Purchases $172,000 Purchase returns $8,000 Sales during March $300,000 The estimate of the cost of inventory at March 31 would be

$84,000.

$144,000.

$159,000.

$112,000.

2)

Ramon Company incurred the following costs during 2015 in connection with its research and development activities.

	Cost of equipment acquired that will have alternative uses in future R & D
	projects over the next 5 years (uses straight-line depreciation).	$396,540
	Materials consumed in R & D projects	55,234
	Consulting fees paid to outsiders for R & D projects	104,100
	Personnel costs of persons involved in R & D projects	122,300
	Indirect costs reasonable allocable to R & D projects	52,341
	Materials purchased for future R & D projects	30,257

Compute the amount to be reported as research and development expense by the company on its income statement for 2015. Assume equipment is purchased at beginning of year.

$290,983

$360,942

$413,283

$730,515

3)

On August 1, 2015, Tanner Corporation purchased a new machine on a deferred payment basis. A down payment of $2,000 was made and 4 annual installments of $6,000 each are to be made beginning on September 1, 2015. The cash equivalent price of the machine was $23,000. Due to an employee strike, Tanner could not install the machine immediately, and thus incurred $300 of storage costs. Costs of installation (excluding the storage costs) amounted to $800. The amount to be capitalized as the cost of the machine is

$23,000.

$23,800.

$24,100.

$26,000.

4)

Fosbre Corporation's April 30 inventory was destroyed by fire. January 1 inventory was $175,650, and purchases for January through April totaled $585,500. Sales for the same period were $706,700. Fosbre's normal gross profit percentage is 35% on sales. Using the gross profit method, estimate Fosbre's April 30 inventory that was destroyed by fire.

$195,000

$301,795

$1,220,505

None of the above

5)

ELO Corporation purchased a patent for $180,000 on September 1, 2016. It had a useful life of 10 years. On January 1, 2018, ELO spent $44,000 to successfully defend the patent in a lawsuit. ELO feels that as of that date, the remaining useful life is 5 years. What amount should be reported for patent amortization expense for 2018?

$41,200.

$40,000.

$37,600.

$31,200.