Use the following information from Company B to answer the following questions 6 & 7: Equipment Cost $36,000 Accumulated Deprecation $30,000

6. Company B sells the asset for $5,000 Cash. Journalize the transaction.

Date	Accounts Title and Explanation	Debit	Credit

7. Company B sells the asset for $8,000 cash. Journalize the transaction.

Date	Account Title and Explanation	Debit	Credit

ABC Company acquires a mine for $20,000,000. Estimated production from the mine is 500,000 pounds of gemstones.

After extraction, the mine will have a salvage value of $0. In year 1 the company sells 110,000 pounds of gemstones. 8. How much depletion should be recorded for year 1? _____________________