Question 28 QBC Mining Company paid $200,000 to purchase a mine with 100.000 tons of coal reserves. The company extracted 12,000 tons of coal in Year 1 and 38,000 tons in Year 2 . What is the Year 1 Depletion Expense? 548,000 $24,000 $100,000 None of these. Next Question 27 At the beginning of Year 1 . ABC Company purchased a piece of equipment for $800. This equipment was expected to last 5 years at which time ABC hoped to sell the equipment for $300. At the beginning of Year 6 . ABC Company sold the equipment for $400. ABC Company uses the straight line depreciation method. What is the gain or loss recognized on the sale of this equipment? $100 gain $400 loss $100 loss $300 loss