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4. Mondale Winery depreciates its equipment using the group method. The cost of equipment purchased in 2013 totaled $425,000. The estimated residual value of the
4. Mondale Winery depreciates its equipment using the group method. The cost of equipment purchased in 2013 totaled $425,000. The estimated residual value of the equipment was $40,000 and the group depreciation rate was determined to be 18%. What is the annual depreciation for the group? If equipment that cost $42,000 is sold in 2014 for $35,000, what amount of gain or loss will the company recognize for the sale? 5. Fitzgerald Oil and Gas incurred costs of $8.25 million for the acquisition and development of a natural gas deposit. The company expects to extract 3 million cubic feet of natural gas during a four-year period. Natural gas extracted during years 1 and 2 were 700,000 and 800,000 cubic feet, respectively. What was the depletion for year 1 and year 2
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