Please include the formula used to solve.

1)Navajo Mining Company purchased a mine in 2013 for $3,400,000. It was estimated that the mine contained 200,000 tons of ore and that the mine would be worthless after all of the ore was extracted. The company extracted 25,000 tons of are in 2013 and 30,000 tons of ore in 2014. What is the book value of the mine at the end of 2014? A. $2,975,000 B. $2,465,000 C. $2,720,000 D. $3,060,000

2)

On January 1, 2012, Portwell Company purchased a patent for $200,000. They estimate a useful life of 4 years. What entry is needed at the end of the first year?

A.

Loss on patents	50,000
Patents		50,000

B.

Amortization expense

minus

patents	50,000
Patents		50,000

C.

Patents	50,000
Amortization expense minus

patents

50,000

D.

Amortization expense

minus

patents	50,000
Accumulated amortization		50,000