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Clark Oil and Gas incurred costs of $20.7 million for the rights to extract resources from a natural gas deposit. The company expects to extract

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Clark Oil and Gas incurred costs of $20.7 million for the rights to extract resources from a natural gas deposit. The company expects to extract 9.0 million cubic feet of natural gas during a slx-year period. Natural gas extracted during years 1 and 2 were 980,000 and 1,820,000 cubic feet, respectively. What was total depletion for year 1 and year 2 , assuming the company uses the units-of-production method? Mulitele Choice 56.90 million. SA19 milson. 59.00mili. 36.44 milion. On February 12, 2021, Forest incorporated purchased the right to remove timber from a 15,000 -acte tract of land over the next four years, and the company estimates no residual value. The timber is to be sold as lumber for new home construction. The cost of the timber rights was $320,000, with estimated salable timber feet of 800,000 . During 2021 and 2022, Forest harvested and sold 640,000 feet of timber. What is the book value of the timber rights at the end of 2022 , assuming the company uses the units-of-production methoo? Mulitiple Choice 564,000 580,000 . $175,000. $256,000. Fellingham Corporation purchased equipment on January 1, 2019, for $224,000. The company estimated the equipment would have a useful life of 10 years with a $20,400 residual value. Fellingham uses the straight-line depreciation method. Early in 2021, Fellingham reassessed the equipment's condition and determined that its total useful life would be only six years in total and that it would have no salvage value. How much would Fellingham report as depreciation on this equipment for 2021 ? Mutiplo Chaice 546820 $40720 530,547. 545,820 Montana Mining Co. (MMC) paid $200 miliion for the right to explore and extract rare metals from land owned by the state of Montana. To obtain the rights, MMC agreed to restore the land to a sultable condition for other uses afer its exploration and extraction activities, MMC incurred exploration and development costs of $60 million on the project MMC has a creditadjusted risk free interest rate is 9%. It estimates the possible cosh flows for restoring the land, three years after its extraction activities begin, as follows: (PY of S1. PVA of \$1) (Use appropriate factor(s) from the tables provided.) The asset retirement obligation (rounded) that should be recognized by MMC at the beginning of the extraction activities is

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