a. Marigold Corp. purchased a tooling machine on January 3, 2014 for $950000. The machine was being depreciated on the straight-line method over an estimated useful life of 10 years, with no salvage value. At the beginning of 2021, the company paid $203000 to overhaul the machine. As a result of this improvement, the company estimated that the useful life of the machine would be extended an additional 5 years (15 years total). What should be the depreciation expense recorded for the machine in 2021?

$35500

$83000

$26000

$61000

Save for Later

b. Marigold Corp. acquired a tract of land containing an extractable natural resource. Marigold is required by its purchase contract to restore the land to a condition suitable for recreational use after it has extracted the natural resource. Geological surveys estimate that the recoverable reserves will be 2400000 tons, and that the land will have a value of $960000 after restoration. Relevant cost information follows:

Land	$7580000
Estimated restoration costs	1520000

If Marigold maintains no inventories of extracted material, what should be the charge to depletion expense per ton of extracted material?

$3.39

$3.16

$2.76

$3.79