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The following information is available on a depreciable asset owned by Mutual Savings Bank Purchase date Purchase price Salvage value Useful life Depreciation method July

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The following information is available on a depreciable asset owned by Mutual Savings Bank Purchase date Purchase price Salvage value Useful life Depreciation method July 1, Year 1 $98,500 $10,500 10 years straight-line The asset's book value is $74,500 on July 1, Year 3. On that date, management determines that the asset's salvage value should be $5,500 rather than the original estimate of $10,500. Based on this information, the amount of depreciation expense the company should recognize during the last six months of Year 3 would be Multiple Choice $4.312.50 LICIOU UMJ Fortune Drilling Company acquires a mineral deposit at a cost of $5,900,000. It incurs additional costs of $600,000 to access the deposit, which is estimated to contain 2,000,000 tons and is expected to take 5 years to extract. Compute the depletion expense for the first year assuming 418,000 tons were mined. Multiple Choice $1233100 $1.358.500 $1.300.000 The following information is available on a depreciable asset owned by Mutual Savings Bank Purchase date Purchase price Salvage value Useful life Depreciation method July 1, Year 1 $98,500 $10,500 10 years straight-line The asset's book value is $74,500 on July 1, Year 3. On that date, management determines that the asset's salvage value should be $5,500 rather than the original estimate of $10,500. Based on this information, the amount of depreciation expense the company should recognize during the last six months of Year 3 would be Multiple Choice $4.312.50 LICIOU UMJ Fortune Drilling Company acquires a mineral deposit at a cost of $5,900,000. It incurs additional costs of $600,000 to access the deposit, which is estimated to contain 2,000,000 tons and is expected to take 5 years to extract. Compute the depletion expense for the first year assuming 418,000 tons were mined. Multiple Choice $1233100 $1.358.500 $1.300.000

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