1. On January 1, 1997 Nemeth Co. purchased for $90,000 a patent that had a remaining life of 15 years. On January 1, 1998, legal costs of $14,000 were incurred in a successful defense of the patent. What should be the patent amortization expense for 1998?

2. Which assets should not be classified as property, plant, and equipment?

a Leasehold improvements

b Wasting assets

c Idle land and buildings

d Long-lived tangible assets