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1. A computer company has $2,500,000 in research and development costs. Before accounting for these costs, the net income of the company is $2,000,000. What is the amount of net income or loss after these R & D costs are accounted for?

a. Cannot be determined from the information provided
b. $500,000 loss
c. $2,000,000 net income
d. $0

2. All of the following factors in computing depreciation are estimates except:

a. salvage value.
b. residual value.
c. useful life.
d. cost.

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