Chapter 11 & 12 TestQuestion 1During the period from 2016 to the end of 2017, Excellence, Inc. spent $90,000 on research and development for aninvention that was patented on January 1, 2018. Excellence estimated that the patented invention would be useful inits production for 10 years. At the beginning of 2020, Excellence paid $16,000 in legal fees in a successful defense ofthe patent. What is Excellence's patent amortization expense for 2020?$25,000$11,000$10,600$2,000
Question 2Exhibit 11-1On January 1, Year 1, Hills purchased equipment for $350,000. The equipment had an estimated useful life of tenyears and an estimated residual value of $50,000. Use the double-declining-balance method to answer the followingquestion(s).Refer to Exhibit 11-1. How much depreciation should Hills record on the asset in year 2?
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Question 3Five skid steers costing $20,000 each were purchased by the Biggs Excavating Company at the beginning of 2020.Biggs capitalized the skid steers in a single asset account and depreciates them using the group method. Each skidsteer was expected to have a residual value of $6,000 in four years. At the end of 2023, Biggs sold one skid steer for$8,000. For what amount is accumulated depreciation debited in the journal entry to record the disposal of that skidsteer?
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