6.A coal mine cost $2,500,000 and contained an estimated 2,000,000 tons of coal. In the first year (Year 1) 400,000 tons were extracted. What is the depletion expense in Year 1?

$625,000

$2,000,000

$500,000

$400,000

We do not record depletion expense

9.Complete the sentence. Impairment of capital assets is:

None of the other alternatives are correct

When the fair value of the net assets exceeds the equity or the retained earnings

When the fair value of the net assets exceeds the carrying value of the assets plus liabilities

When the fair value of the net assets exceeds the carrying value of the net assets

When capital assets have been not amortized appropriately such that their fair value exceeds their carrying value

10.Wingert Co., purchased a new truck for $62,000. The truck is expected to have a salvage value of $12,000 four years later after using it for 100,000 kilometers. During the first and second years of operation, Wingert Co. put 25,000 and 10,000 kilometers respectively, on the truck. For the second year, depreciation expense would be:

$18,500

None of the above

$12,500

$7,400

$5,000