Depletion A zinc mine contains an estimated 900,000 tons of zinc ore. The mine cost $14.4 million. The tonnage mined during 20X4, the first year of operations, was 120,000 tons. 1. What was the depletion for 20X4? 2. Suppose that in 20X5 a total of 100,000 tons were mined. What depletion expense would be charged for 20X5?

-57 Popular Depreciation Methods (Problem 8-71 is an extension of this problem.) The annual report of Alaska Airlines contained the following footnote: PROPERTY, EQUIPMENT, AND DEPRECIATION-Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives, which are as follows: Aircraft and other flight equipment Buildings Capitalized leases and leasehold improvements Other equipment 10-20 years 10-30 years Term of lease 3-15 years Consider a Boeing 727-100 airplane that Alaska acquired for $30 million. Its useful life is 20 years, and its expected residual value is $6 million. Prepare a tabular comparison of the annual depreciation and book value for each of the first 3 years of service life under straight-line and DDB depreciation. Show all amounts in thousands of dollars (rounded to the nearest thousand). (Note that this is a com- parison of methods used for reporting to shareholders. Such methods may differ from those used for reporting to the income tax authorities.) Hint: See Exhibit 8-2, p. 345.