1- A coal mine cost $1,010,000 and is estimated to hold 60,000 tons of coal. There is no residual value. During the first year of operations, 10,000 tons of coal are extracted and sold. Calculate depletion per unit.

a.16.83

b. 17.68

c.13.26

d.14.42

2- SMJ Inc purchased land to build an office building. In the first quarter, the following amounts were incurred:

Acquisition of land44,000

Architectural fees5,200

Lawn sprinkler system3,000

Surveys & legal fees2,400

Land clearing3,600

Contractor charges for building60,000

Fencing8,900

Material & labor cost for building395,000

Install lighting & signage1,700

Parking lot 2,700

What amount should be recorded as the cost of the building on SMJs books?

a.515,900

b. 464,000

c.452,200

d.460,200