11. On March 31, 2018, M. Belotti purchased the right to remove gravel from an old rock quarry. The gravel is to be sold as roadbed for highway construction. The cost of the quarry rights was $310,800, with estimated salable rock of 37,000 tons. During 2018, Belotti loaded and sold 5,100 tons of rock and estimated that 31,900 tons remained at December 31, 2018. At January 1, 2019, Belotti estimated that 10,200 tons still remained. During 2019, Belotti loaded and sold 15,300 tons. Belotti uses the units-of-production method. Belotti would record depletion in 2018 of: (Do not round depletion rate per ton)

Multiple Choice

a. $49,689.

b. $42,840.

c. $40,945.

d. $32,130.

13.

On March 31, 2018, M. Belotti purchased the right to remove gravel from an old rock quarry. The gravel is to be sold as roadbed for highway construction. The cost of the quarry rights was $289,000, with estimated salable rock of 34,000 tons. During 2018, Belotti loaded and sold 5,900 tons of rock and estimated that 28,100 tons remained at December 31, 2018. At January 1, 2019, Belotti estimated that 17,700 tons still remained. During 2019, Belotti loaded and sold 11,800 tons. Belotti uses the units-of-production method. Belotti would record depletion in 2019 of: (Round cost per ton to two decimal places.)

Multiple Choice

a. $172,302.

b. $162,462.

c. $159,182.

d. $161,382.

14.

Short Corporation acquired Hathaway, Inc., for $33,520,000. The fair value of all Hathaway's identifiable tangible and intangible assets was $30,000,000. Short will amortize any goodwill over the maximum number of years allowed. What is the annual amortization of goodwill for this acquisition?

Multiple Choice

a. $880,000.

b. $3,520,000.

c. $1,760,000.

d. $0.

15.

Granite Enterprises acquired a patent from Southern Research Corporation on January 1, 2018, for $3.2 million. The patent will be used for 5 years, even though its legal life is 20 years. Rocky Corporation has made a commitment to purchase the patent from Granite for $100,000 at the end of five years. Compute Granite's patent amortization for 2018, assuming the straight-line method is used.

Multiple Choice

a. $310,000.

b. $620,000.

c. $320,000.

d. $640,000.