Question 6,7 & 8 please. Thank you

QUESTION 6 Clover Incorporated reported sales revenue for the period of $350 million cost of goods sold of $170 million and general operating expenses of $60 million. Which of the following is true? Net income is $180 million Gross profit is $180 million Net income is $240 million Gross profit is $120 million QUESTION 7 During the year, a company purchased a patent for $550.000 from another company that will extend the battery life of their main product sold. 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 patents $675.000 should be expensed as research and development $115,000 can be capitalized as a patent $550.000 should be expensed as research and development QUESTION 8 Which of the following statements related to internal controls is false? Fraud is more likely to occur when there is opportunity, financial pressure and rationalization for the person(s) committing the illegal act Internal controls were established because of the Sarbanes-Oxley Act. Segregation of duties is an effective control activity Users have less reliability of accounting records due to internal controls