1 The following information is available on a depreciable asset owned by Sedgewick, Inc.: Purchase date October 1, Year 1 Purchase price $85,000 Salvage value $10,000 Useful life 10 years Depreciation method straight-line The asset's book value is $70,000 on October 1, Year 3. On that date, management determines that the asset's salvage value should be $6,000 rather than the original estimate of $10,000. Based on this information, the amount of depreciation expense the company should recognize during the last three months of Year 3 would be: a. $ 2,000 b. $ 1,700 2,100 d. $ 2,400 e. $ 1,900 c. $ 2 Johnson Company acquires a mineral deposit at a cost of $5,900,000. It incurs additional costs of $600,000 to access the deposit, which is estimated to contain 2,000,000 tons and is expected to take s years to extract. Compute the depletion expense for the first year assuming 418,000 tons were mined. Johnson uses the units of production depreciation method. 2. $ 1.233,100 b. $ 1.280,000 c. $ 1,300,000 d. 5 1.180,000 c. $1,358,500