A company purchased land for its
natural resources at a cost of $1,640,000. It expects to mine 2,350,000 tons
of ore from this land. The residual value of the land is estimated to be
$460,000. What is the amount of depletion per ton of ore? (Round your answer to 3 decimal places.)
|
|
$0.698
|
|
$0.502
|
|
$0.894
|
|
$1.119
|
($1,640,000 − $460,000) /
2,350,000 = $0.502
|
On
September 1, a company purchased a vehicle for $98,000 with a residual value
of $5,000. The estimated useful life is 10 years and the company uses the
straight-line method.
|
What is the depreciation expense
for the year ended December 31? (Round your
final answer to the nearest whole number.)
|
|
$2,325
|
|
$3,100
|
|
$3,267
|
|
$9,300
|
Depreciation for 4 months is:
($98,000 – $5,000) / 10 × 4 / 12 = $3,100
|
An asset is purchased on January 1
for $41,700. It is expected to have a useful life of five years after which
it will have an expected salvage value of $5,400. The company uses the
straight-line method. If it is sold for $30,800 exactly two years after its
purchased, the company will record a:
|
|
gain of $7,280.
|
|
gain of $3,620.
|
|
loss of $3,620.
|
|
loss of $7,280.
|
Year
|
Depreciation
Expense Per Year
|
(Cost
– Residual Value) × (1 ÷ Useful Life)
|
1
|
$7,260.00
|
($41,700
– $5,400) × (1 ÷ 5)
|
2
|
$7,260.00
|
($41,700 –
$5,400) × (1 ÷ 5)
|
Total
|
$14,520.00
|
|
Cash (+A)
|
30,800
|
|
Accumulated
Depreciation (-xA, +A)
|
14,520
|
|
Equipment
(-A)
|
|
41,700
|
Gain
on Sale (+R, +SE)
|
|
3,620
|
Selling
Price
|
$30,800
|
|
Net
Book Value
|
$27,180
|
|
Gain
(or loss)
|
$3,620
|
|
A truck costing $12,400, on which
$9,040 of accumulated depreciation has been recorded was sold for $2,040
cash. The entry to record this event would include a:
|
|
gain of $1,320.
|
|
credit to the Truck account for
$3,360.
|
|
credit to Accumulated Depreciation
for $9,040.
|
|
loss of $1,320.
|
Cost
|
$12,400
|
|
Accumulated
Depreciation
|
$9,040
|
|
Net
Book Value
|
$3,360
|
|
Selling
Price
|
$2,040
|
|
Net
Book Value
|
$3,360
|
|
Gain
(or loss)
|
($1,320)
|
|
Loss on Sale
|
1,320
|
|
Cash
|
2,040
|
|
Accumulated Depreciation
|
9,040
|
|
Equipment
|
|
12,400
|
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