Question 5 2 pts This question is from the 1st and 2nd Nearpod activity sets in Chapter 11. Peabody Coal acquired the mineral rights to a tract of land containing coal deposits. Total costs of acquisition, exploration, development were $1,500,000 and an ARO of $500,000 was recorded. The borrowing rate for Peabody is 5%. Peabody estimated the land contained 1,000,000 tons of coal. Peabody started extracting coal in 2019. There were 100,000 tons of coal mined in 2019 and 150,000 tons of coal mined in 2020. Choose each correct answer below and leave incorrect answers unmarked. There will be a journal entry necessary for depletion of the coal mine asset. While depletion reduces the value of the coalmine asset, accretion increases the value of the ARO. O Accretion is calculated on a straightline basis using the ARO and the estimated number of years of production. O Depletion is calculated on a straight line basis using the total cost and the total estimated number of years of production. There is no entry necessary to record the exraction of the coal since it is just moving between asset categories (from natural resource to inventory). Question 6 1 pts Using the information in the previous question, the journal entry to record Accretion of the ARO in 2020 will include a credit for how much? (use whole numbers with no dollar sign but with commas) Question 7 1 pts Using the information above, the amount of depletion recorded in 2019 would be? (use whole dollars with no dollar sign but with commas) D Question 8 2 pts This question comes from the 1st set of Nearpod activities in Chapter 11 Everest technologies got a patent for a high-tech hearing-screener. Patent registration costs consisted of $12,000 in attorney fees and $3,000 in federal registration fees. The device has a contractual (useful) life of 8 years. The legal life of the patent is 10 years. The annual amount of patent amortization should be? (use whole numbers without dollar signs but with commas)