Cassidy Corporation purchased factory equipment that was installed and put into service on January 2, 2019, at a total cost of $55,000. Residual value was estimated at $3,000. The equipment is being depreciated over four years using the double-declining- balance method. For the calendar year 2020, Cassidy should record depreciation expense on this equipment of Select one: O a. $27,500 O b. $13,750 O c. $52,000 O d. $13,000 On January 3, 2018, City Corp. purchased machinery. The machinery has an estimated useful life of eight years and an estimated residual value of $67,500. City uses straight-line depreciation for all their machinery, and recorded $115,500 depreciation expense for 2020. The acquisition cost of the machinery was Select one: a. $924,000 O b. $856,500 O b. $856,500 O c. $655,500 O d. $991,500 On March 24, 2019, Dagger Ltd. purchased a new machine for $50,000. This machine has an eight-year estimated useful life, an estimated residual value of $2,500, and is expected to produce 95,000 units over its useful life. The machine produced 5,500 units in 2019 and 6,500 units in 2020. Using the unit of production method, to the nearest dollar, the related Accumulated Depreciation account on the adjusted trial balance at December 31, 2020 would be Select one: O a. $3,250 O b. $6,316 O c. $6,500 O d. $6,000 At the beginning of 2020, Grimace Inc. acquired a rights to a mine for $600,000. Surveys conducted by geologists found that approximately 8,000 lbs of gold appear to be in the mine. Grimace had $50,000 of development costs for this mine before any extraction of minerals. During 2020, 2,000 lbs of gold were extracted and 1,500 lbs were sold. Required: (a) What amounts will be shown on the balance sheet and income statement for the year ended December 31, 2020 from the operation of this mine? (5 marks) Balance Sheet Inventory (current asset): Mining rights (non-current asset): Income Statement Cost of goods sold: (b) In January 2021, Grimace discovers a large unexpected deposit of gold. Grimace estimates that 7,000 lbs of gold remain in the mine at this time. Another 2,000 lbs of gold were extracted in 2021. Calculate the net book value of the mine at the end of 2021 (3 marks) Units of production rate: /lb Malta