Equipment with a cost of $88,888, an estimated residual value of $6,800, and an estimated life of 14 years was depreciated by the straight-line method for 7 years. Due to obsolescence, it was determined that the remaining useful life should be shortened by 4 years and the residual value changed to zero. The depreciation expense for the current and future years is

a.$4,349.45

b.$15,948.00

c.$3,417.43

d.$41,044.00

The Weber Company purchased a mining site for $668,048 on July 1. The company expects to mine ore for the next 10 years and anticipates that a total of 85,565 tons will be recovered. During the first year the company extracted 6,660 tons of ore. The depletion expense is

a.$62,634.80

b.$52,014.60

c.$48,752.15

d.$41,700.00

A fixed asset with a cost of $34,674 and accumulated depreciation of $31,206.60 is sold for $5,894.58. What is the amount of the gain or loss on disposal of the fixed asset?

a.$2,427.18 gain

b.$3,467.40 gain

c.$2,427.18 loss

d.$3,467.40 loss

A machine with a cost of $71,252.00 has an estimated residual value of $4,013.00 and an estimated life of 6 years or 17,176 hours. It is to be depreciated by the units-of-output method. What is the amount of depreciation for the second full year, during which the machine was used 3,208 hours?

Do not round your intermediate calculations.

$11,206.50

$13,307.90

$12,558.38

$22,413.00

A building with an appraisal value of $136,466 is made available at an offer price of $156,541. The purchaser acquires the property for $33,950 in cash, a 90-day note payable for $26,169, and a mortgage amounting to $59,859. The cost basis recorded in the buyer's accounting records to recognize this purchase is

a.$136,466

b.$156,541

c.$122,591

d.$119,978