1. Company E purchased a piece of land for its natural resources at a cost of $2,000,000. The land is expected to have a salvage value of $500,000. A lumber expert visited the property and estimated the property to have 750,000 pounds of timber.

The first year, the company logged 400,000 pounds of timber and the second year, another 500,000 pounds of timber were logged.Calculate the depletion expense rate AND calculate the depletion expense the company should recognize in Year 1 and Year 2.

Rate:

Year 1:

Year 2:

2. Company L has 50,000 shares of cumulative 5% preferred stock outstanding with a $5.00 par value. They also have 40,000 shares outstanding of Common Stock with a $1.00 par value.

The Company declared and paid the following dividends:

Year 1: $10,000

Year 2: $12,000

Year 3: $20,000

Calculate the total Dividends AND the Dividends per share that the Preferred and Common Shareholders will receive in each year.

Preferred Common

Year 1:

Total Dividends

Dividends Per Share

Year 2:

Total Dividends

Dividends Per Share

Year 3:

Total Dividends

Dividends Per Share