1: CullumberLtd. acquired the rights to use 1,500 hectares of land in northern Alberta to mine for uranium. The cost of the land was $105,000, exploration costs were $212,000, and the development costs incurred were $1,015,000. All of these costs were capitalized. The company estimated that the mine would produce about222,000ounces of uranium. In the first year,27,750ounces were extracted from the mine, of which11,000were sold. At the beginning of year two, the company revised its estimate and determined that the mine would produce a remaining amount of155,400ounces of uranium. In the second year,35,000ounces were extracted from the mine.

Calculate the year two depletion cost.

Prepare the journal entry for the year two depletion cost.

2: KingbirdIndustries purchased all the following assets and liabilities of Protector Goods for $1,013,000cash:

Book Value Fair Value

Accounts Receivable $128,000 $128,000

Inventory 89,000 97,000

Property, Plant & Equipment (net) 573,000 700,000

Land 144,000 164,000

Accounts Payable 88,000 88,000

Notes Payable 112,000 112,000

Prepare the appropriate journal entries forKingbirdIndustries on acquisition.