An asset was acquired on January $1,2024,$ for $$33,000$ with an estimated four$-$year life and

$$2,000$ residual value. The company uses straight$-$line depreciation. What is the gain or loss

if the asset was sold on December $31,2026,$ for $$10,600?$

A$)$ $$850$ gain

B$)$ $$2,850$ gain

C$)$ $$850$ loss

D$)$ $$6,900$ loss

A company incurred costs of $$16\mathrm{.}6$ million for the rights to extract resources from a natural

gas deposit. The company expects to extract $8\mathrm{.}3$ million cubic feet of natural gas during a six$-$

year period. Natural gas extracted during years $1$ and $2$ were $830,000$ and $1,630,000$ cubic

feet, respectively. What was total depletion for year $1$ and year $2,$ assuming the company uses

the units$-$of$-$production method?

Note: Do not round intermediate calculations.

A$)$ $$5\mathrm{.}53$ million

B$)$ $$4\mathrm{.}92$ million

C$)$ $$8\mathrm{.}30$ million

D$)$ $$3\mathrm{.}26$ million

Intangible assets that have an indefinite useful life:

A$)$ are those with no foreseeable limit on the period of time over which the asset is

expected to contribute to the cash flows of the entity.

B$)$ are those with no legal, contractual, or economic factors that are expected to limit

their useful life to a company.

C$)$ are those whose acquisition costs are not amortized over their useful life.

D$)$ All of the other answer choices are correct.

Granite Enterprises acquired a patent from Southern Research Corporation on January $1,$

$2024,$ for $$4\mathrm{.}6$ million. The patent will be used for five years, even though its legal life is $20$

years. Rocky Corporation has made a commitment to purchase the patent from Granite for

$$140,000$ at the end of five years. Assuming the straight$-$line method is used, what is

Granite's patent amortization for $2024?$

A$)$ $$920,000$

B$)$ $$460,000$

C$)$ $$892,000$

D$)$ $$446,000$