In January 2018, Ace Mining Corporation purchased a mineral mine for $4,200,000 with removable ore estimated by geological surveys at 2,500,000 tons. The property has an estimated (salvage) value of $400,000 after the ore has been extracted. Ace incurred $1,150,000 of development costs preparing the property for the extraction of ore. During 2018, 340,000 tons were removed and sold. For the year ended December 31, 2018 Ace should record what amount of depletion?

		$516,800
		$594,000
		$456,000
		$673,200

During 2017 the DLD Company had net income of $87,000. In addition, selected accounts showed the following changes:

Accounts Receivable $3,000 increase

Accounts Payable 1,000 increase

Buildings 4,000 decrease

Depreciation Expense 1,500 increase

Bonds Payable 8,000 increase

Gain on Sale of Equipment 5,000

What was the amount of cash provided by operating activities?

		$82,000
		$83,500
		$91,000
		$81,500

Question 12

Construction began on an office building on March 1. The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land, $1,800,000 was borrowed on March 1, 2017 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2017 was a $750,000, 12%, 6-year note payable dated January 1, 2017. The actual interest cost incurred during 2017 was:

		$126,000
		$252,000
		$225,000
		$210,000