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
2. All of the following factors in computing depreciation are estimates except:
a. salvage value.
b. residual value.
c. useful life.