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

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