Need 9 multiple choice accounting questions answered.

2. Which of the following would not be capitalized to a property and equipment account?

a. Transportation of the asset

b. Cost of training employees on the asset

c. Installation charges

d. Inventory produced by asset

e. Legal fees to register property

3. Hastings Company created a product and filed for a patent, spending $12,000 to do so. The patent is given a life of 6 years. In year 3, Hastings is sued by an inventor claiming that the patent is hers.On January 1, year 4, Hastings receives notice that it has won the lawsuit, but it spent $300,000 in legal fees to do so. Assuming that the legal life has not changed, which of the following would be amortization expense calculated at the end of year 4?

a. $2,000

b. $120,000

c. $52,000

d. $102,000

e. $104,000

4. Which of the following would be considered property and equipment?

a. Land held for speculative purposes

b. Machine held as inventory

c. Land held for a future building site

d. Building purchased by a realtor for resale

e. Building purchased to be a warehouse facility

5. Which of the following shows the correct accounting for research and development costs under U.S. GAAP?

a. All research and development costs must be expensed as incurred.

b. Research costs are expensed, but some development costs may be capitalized.

c. All research and development costs are capitalized.

d. Research and development costs that lead to successful projects are capitalized.

e. Development costs are expensed, but some research costs may be capitalized.

6. Florence Corporation sells a piece of equipment on April 1, 20X6 for $21,000. It was originally purchased on July 1, 20X4 for $46,000. On that date it was assigned a residual value of $4,000 and a life of 3 years. What gain or loss should be recorded on the sale?

a. $500 loss

b. $3,000 gain

c. $10,500 gain

d. $500 gain

e. $3,000 loss

7. Hyena Corporation pays $700,000 for Quinton Company. Quinton has two assets. The first is a building with a book value of $200,000 and a fair value of $300,000. The second is a patent with a book value of $10,000 and a fair value of $250,000. What amount is reported as goodwill as part of this sale?

a. $250,000

b. $390,000

c. $700,000

d. $150,000

e. $490,000

8. Jacobs Company estimates that its new equipment will last 6 years and have a residual value of $3,000. The original cost of the equipment was $39,000. What would be the balance in the accumulated depreciation account at the end of year 4?

a. $0

b. $6,000

c. $24,000

d. $26,000

e. $39,000

9. Which of the following accounts shows the cost of an asset expensed to date?

a. Equipment

b. Allowance for doubtful accounts

c. Depreciation expense

d. Accumulated depreciation

e. Land

10. Which of the following principles dictates that an asset's cost should be expensed over its useful life?

a. Matching

b. Conservatism

c. Consistency

d. Going concern

e. Revenue recognition