5) A coal mine cost $1,003,000 and is estimated to hold 54,000 tons of coal. There is no residual value. During the first year of operations, 11,000 tons are extracted and sold. Calculate depletion expense for the first year. (Round any intermediate calculations to the nearest cent.) A) $100,300 B) $150,450 C) $200,600 D) $204,270 6) Which of the following represents a privilege granted by a government to use public property in performing services? A) goodwill B) license C) franchise D) trademark 14) Angie's gross pay for the week is $970.00. Her deduction for federal income tax is based on a rate of 20%. She has voluntary deductions of $220.00. Her year-to-date pay is under the limit for OASDI. What is the amount of FICA-Medicare Tax deducted from her pay? (Assume a FICA- OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%. Do not round any intermediate calculations, and round your final answer to the nearest cent.) A) $194.00 B) $14.07 C) $60.14 D) $268.21 15) 15) Sunset, Inc. has a policy of accruing $2300 for every employee as a vacation benefit. Sarah an employee, took a vacation. Which of the following is the correct journal entry for the vacation benefit paid? A Vacation Benefits Payable Vacation Benefits Expense 1917 1917 2300 Vacation Benefits Expense Cash 2300 c) 2300 Vacation Benefits Payable 2300 Cash 1917 1917 Vacation Benefits Expense Vacation Benefits Payable 16) 16) Lana Appliances sells dishwashers with a four-year warranty. In 2018, sales revenue for dishwashers is $96,000. The company estimates warranty expense at 4.5% of revenues. What is the 2018 warranty expense? (Round your final answer to the nearest dollar.) A) $4320 B) $1080 C) $0 D) $3388 171 A restaurant is being sued because a customer claims to have found a bug in her chill. The company's lawyers believe there is only a remote possibility that the lawsuit will result in an actual liability. Which of the following actions should be taken by the company's management? A) The situation should be described in a note to the financial statements. B) The possible liability should not be shown in the financial statements. C) The liability should be estimated and accrued as an expense. D) An expense must be matched to the period in which the incident occurred