Chasteen Company acquired mineral rights for $13,600,000. The mineral deposit is estimated at 80,000,000 tons. During the current year, 13,750,000 tons were mined and sold. Required: 1. Determine the amount of depletion expense for the current year. $ Hide FeedbackShow All Feedback Check My Work Feedback Post Submission Feedback Solution Hide 2. Journalize the adjusting entry to recognize the depletion expense. Equipment acquired on January 2, 2011 at a cost of $273,500 has an estimated useful life of eight years and an estimated residual value of $35,500. Required: 1. What was the annual amount of depreciation for the years 2011, 2012, and 2013, assuming the straight-line method of depreciation is used? Depreciation Expense 2011 $ 2012 $ 2013 $ 2. What was the book value of the equipment on January 1, 2014? $ Hide FeedbackShow All Feedback Check My Work Feedback Post Submission Feedback Solution Hide 3. Assuming that the equipment was sold on January 2, 2014, for $170,500, journalize the entry to record the sale. For a compound transaction, if an amount box does not require an entry, leave it blank. Accounts Receivable Cash Depreciation Expense-Equipment Equipment Gain on Disposal of Fixed Assets Correct 2 of Item 2 Correct 3 of Item 2 Correct 4 of Item 2 Accounts Payable Accumulated Depreciation-Equipment Depreciation Expense-Equipment Equipment Gain on Disposal of Fixed Assets Correct 5 of Item 2 Correct 6 of Item 2 Correct 7 of Item 2 Accounts Payable Depreciation Expense-Equipment Equipment Gain on Disposal of Fixed Assets Loss on Disposal of Fixed Assets Correct 8 of Item 2 Correct 9 of Item 2 Correct 10 of Item 2 Accumulated Depreciation-Equipment Equipment Gain on Disposal of Fixed Assets Loss on Disposal of Fixed Assets Correct 11 of Item 2 Correct 12 of Item 2 Correct 13 of Item 2 Hide FeedbackShow All Feedback Check My Work Feedback Post Submission Feedback Solution Hide 4. Assuming that the equipment had been sold on January 2, 2014, for $189,000 instead of $168,500, journalize the entry to record the sale. For a compound transaction, if an amount box does not require an entry, leave it blank. Cash Depreciation Expense-Equipment Equipment Gain on Disposal of Fixed Assets Loss on Disposal of Fixed Assets Correct 2 of Item 3 Correct 3 of Item 3 Correct 4 of Item 3 Accumulated Depreciation-Equipment Accounts Payable Depreciation Expense-Equipment Equipment Loss on Disposal of Fixed Assets Correct 5 of Item 3 Correct 6 of Item 3 Correct 7 of Item 3 Accumulated Depreciation-Equipment Cash Depreciation Expense-Equipment Equipment Loss on Disposal of Fixed Assets Correct 8 of Item 3 Correct 9 of Item 3 Correct 10 of Item 3 Accounts Payable Cash Depreciation Expense-Equipment Gain on Disposal of Fixed Assets Loss on Disposal of Fixed Assets Correct 11 of Item 3 Correct 12 of Item 3 Correct 13 of Item 3