Problem $5)$ Foster Inc. purchased and put into service equipment for $$300,000$ on July $1,2020.$ Foster also paid fees to install the equipment of $$10,000.$ Insurance for using the machine was going to be $$1,000$ each year. The equipment had a $10-$year life and salvage of $$20,000.$ Foster records depreciation based on the month put in service.

$($a$)$ What was the amount of depreciation expense was charged in $2020$ and $2021$ if Foster uses Double Declining Balance? Need work.

$2020$

$2021$

$($b$)$ Ignore the information in part $($a$).$ Foster purchased equipment that cost $$200,000$ on $1/1/2021.$ The residual $($salvage$)$ was estimated to be $$10,000$ and the life was $10$ years. After $2$ years $(2023),$ Foster decided that the equipment would only have an original life of $6$ years and $$0$ salvage.

What did Foster show for annual depreciation expense in:

$2021?$

$2023?$

$($c$)$ Ignore the information in $($a$)$ and $($b$).$ Foster spent $$100,000$ on research and development activities during $2023.$ One of the items Foster worked on did result in a Patent $($Patent $909).$ Foster paid their attorneys $$5,000$ for filing and other legal fees in securing the patent. Foster$$s management estimates that $40\%$ of the research and development from this year was used in developing Patent $909.$ What would Foster show for

Research and Development Expenses in $2023?$

Patent $909?$