6) A company purchases an oil well for $400,000. It estimates that the well contains 500,000 barrels, has a ten-year life, and has no salvage value. If the company extracts and sells 40,000 barrels during the first year, how much depletion expense should be recorded? a. $40,000 b. $80,000 c. $200,000 d. $32,000

8) The entry to record the sale of equipment costing $40,000, with accumulated depreciation of $34,000 and sale price of $7,700, will include a. a loss on sale of equipment of 32,300. b. a gain on sale of equipment of 1,700. c. a gain on sale of equipment of 7,700. d. a loss of sale of equipment of 26,300.

9) Meggie