Response to the following questions:
1. For some of the fixed assets of a business, the balance in Accumulated Depreciation is exactly equal to the cost of the asset.
(a) Is it permissible to record additional depreciation on the assets if they are still useful to the business? Explain.
(b) When should an entry be made to remove the cost and the accumulated depreciation from the accounts?
2. a. Over what period of time should the cost of a patent acquired by purchase be amortized?
b. In general, what is the required treatment for research and development costs?
c. How should goodwill be amortized?