Question 20 2 pts Recognizing a gain or a loss when disposing of an asset and acquiring a similar asset may depend on whether or not: you believe the IRS will catch you. the asset being disposed costs more than the asset being acquired. you need an amount to balance the journal entry. the asset being acquired costs more than the book value of the asset being disposed. there is commercial substance in the transaction. Question 21 2 pts One hundred acres of land were purchased by the IRON Company for $1,900,000. There were $50,000 in escrow and other closing costs. The company expects to mine 100,000 tons of iron ore over the next 10 years. The land will be used for grazing cattle and is expected to be worth $200,000 after the ore is extracted. What is the depletion expense during the third year if it mined 8,000 tons in year 1:9,000 tons in year 2; and 11,000 tons in year 3. $157,500 $140,000 $209,000 $214,500 $192,500