A company purchased equipment on January 1, 2021, for $85,000. In addition, throughout 2021 the following costs related to the equipment have been incurred: Routine maintenance $ 6,000 Employee operating costs 16,300 Utilities cost 4,800 The amount of expenditures to capitalize for the year is:

Archie Co. purchased a framing machine for $48,000 on January 1, 2021. The machine is expected to have a four-year life, with a residual value of $3,000 at the end of four years. Using the sum-of-the years'-digits method, depreciation for 2022 and book value at December 31, 2022, would be

On September 30, 2021, Corso Steel acquired a patent from Thermo Steel. The agreement specified that Corso will pay Thermo $1,225,000 immediately and then another $1,225,000 on September 30, 2023. An interest rate of 9% reflects the time value of money for this type of loan agreement. (PV of $1, PVA of $1) (Use appropriate factor(s) from the tables provided.)Corso should record the acquisition of the patent on September 30, 2021, for what amount?

Montana Mining Co. (MMC) paid $200 million for the right to explore and extract rare metals from land owned by the state of Montana. To obtain the rights, MMC agreed to restore the land to a suitable condition for other uses after its exploration and extraction activities. MMC incurred exploration and development costs of $60 million on the project. MMC has a credit-adjusted risk free interest rate is 10%. It estimates the possible cash flows for restoring the land, three years after its extraction activities begin, as follows: (PV of $1, PVA of $1) (Use appropriate factor(s) from the tables provided.)

Cash Outflow				Probability
$	11	million			50	%
$	33	million			50	%

The asset retirement obligation (rounded) that should be reported on MMC's balance sheet one year after the extraction activities begin is: