2. During December year 4, Floozy Inc. determined that there had been a significant decrease in the market value of its equipment used in itsmanufacturing process. At December 31, year 4, Floozy compiled the information below. Original cost of the equipment $500,000 Accumulated depreciation 300,000 Expected net future cash inflows (undiscounted) related to the continueduse and eventual disposal of the equipment 175,000 Fair value of the equipment 125,000 What is the amount of impairment loss that should be reported on Floozy's income statement prepared for the year ended December 31, year 4

Question options: $375,000

$ 25,000

$ 75,000

$325,000

3.In January year 4, Floozy Co. purchased a mineral mine for $2,640,000 with removable ore estimated at 1,200,000 tons. After it has extracted allthe ore, Floozy will be required by law to restore the land to its original condition at an estimated cost of $220,000. The present value of the estimated restoration costs is $180,000. Floozy believes it will be able to sell the property afterwards for $300,000. During year 4, Floozy incurred$360,000 of development costs preparing the mine for production and removed and sold 60,000 tons of ore. In its year 4 income statement, whatamount should Floozy report as depletion?

Question options: $150,000

$144,000

$159,000

$135,000

4. Backstreet Company purchased equipment for $80,000 in 2012. The machinery originally had an estimated life of 10 years and a salvage value of $5,000. Benson used the straight-line depreciation method. In 2016, the estimated life was changed to 8 years. Required: What is the annual depreciation expense for 2016?