1.

On January 2, Bering Co. disposes of a machine costing $43,400 with accumulated depreciation of $23,379. Prepare the entries to record the disposal under each separate situation.

1. The machine is sold for $16,792 cash.
2. The machine is traded in for a new machine having a $59,900 cash price. A $20,667 trade-in allowance is received, and the balance is paid in cash. Assume the asset exchange has commercial substance.
3. The machine is traded in for a new machine having a $59,900 cash price. A $15,500 trade-in allowance is received, and the balance is paid in cash. Assume the asset exchange has commercial substance.

2.

On July 23 of the current year, Dakota Mining Co. pays $7,262,640 for land estimated to contain 9,432,000 tons of recoverable ore. It installs and pays for machinery costing $1,980,720 on July 25. The company removes and sells 486,750 tons of ore during its first five months of operations ending on December 31. Depreciation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore is mined.

Required: Prepare entries to record the following. (Do not round your intermediate calculations. Round "Depletion per ton" to two decimal places and round all other answers to the nearest whole dollar.) (a) The purchase of the land. (b) The cost and installation of machinery. (c) The first five months' depletion assuming the land has a net salvage value of zero after the ore is mined. (d) The first five months' depreciation on the machinery.