The company developed a new product during 2011, incurring $140,000 in research and development costs, $10,000 in legal fees, and $10,000 in application fees with the U. S. Patent Office. A patent for this product was granted on July 1, 2011 and is expected to have a useful life of 5 years and a legal life of 20 years. How much amortization expense will be reported on the statement for the year-ending December 31, 2011?

Group of answer choices

$1,000

$16,000

$500

$4,000

$2,000

Linton, Inc. uses straight-line depreciation for its equipment. Linton purchased equipment for $300,000 and estimated its useful life at 8 years. The bookkeeper failed to consider salvage value of $50,000 when computing depreciation expense. What is the impact on the accounting equation of failing to consider the salvage value?

Group of answer choices

Assets: Overstated

Liabilities: No Effect

SHE: Overstated

Assets: Understated

Liabilities: No Effect

SHE: Understated

Assets: Overstated

Liabilities: Overstated

SHE: No Effect

Assets: Understated

Liabilities: Understated

SHE: No Effect

Assets: No Effect

Liabilities: No Effect

SHE: No Effect