Alaska Mining Co. acquired mineral rights for $67,500,000. The mineral deposit is estimated at 30,000,000 tons. During the current year, 4,000,000 tons were mined and sold.

a. Determine the amount of depletion expense for the current year. Round the depletion rate to two decimals places.

b. Journalize the adjusting entry on December 31 to recognize the depletion expense.

Dec. 31	Depletion Expense
	Accumulated Depletion

2. Cannington, Inc., designs, manufactures, and markets personal computers and related software. The following information was taken from a recent annual report of Cannington industries:

Property, Plant, and Equipment (in millions):
	Current Year		Preceding Year
Land and buildings	$614,830		$356,601
Machinery, equipment, and internal-use software	584,089		461,123
Office furniture and equipment	92,225		79,928
Other fixed assets related to leases	743,944		559,495
Accumulated depreciation and amortization	(780,834)		(651,720)

a. Compute the book value of the fixed assets for the current year and the preceding year.

Current year book value	$
Preceding year book value

3.

A printing press priced at a fair market value of $473,400 is acquired in a transaction that has commercial substance by trading in a similar press and paying cash for the difference between the trade-in allowance and the price of the new press.

a. Assuming that the trade-in allowance is $208,300, what is the amount of cash given? $

b. Assuming that the book value of the press traded in is $187,500, what is the gain or loss on the exchange? Gain $

4. A printing press priced at a fair market value of $423,400 is acquired in a transaction that has commercial substance by trading in a similar press and paying cash for the difference between the trade-in allowance and the price of the new press.

a. Assuming that the trade-in allowance is $16,900, what is the amount of cash given? $

b. Assuming that the book value of the press traded in is $17,900, what is the gain or loss on the exchange? $ loss