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Vaughn Manufacturing purchased a new machine on October 31, 2020. A $3600 down payment was made and three monthly installments of $750 each are to
Vaughn Manufacturing purchased a new machine on October 31, 2020. A $3600 down payment was made and three monthly installments of $750 each are to be made beginning on November 30, 2020. The cash price would have been $47000. Vaughn paid no installation charges under the monthly payment plan but an $750 installation charge would have been incurred with a cash purchase. The amount to be capitalized as the cost of the machine on October 31, 2020 would be O $47750 $47000 $57850 O $48500 In January, 2020, Marigold Corp. purchased a mineral mine for $4900000 with removable ore estimated by geological surveys at 2200000 tons. The property has an estimated value of $300000 after the ore has been extracted. The company incurred $1700000 of development costs preparing the mine for production. During 2020,590000 tons were removed and 550000 tons were sold. What is the amount of depletion that Marigold should expense for 2020? O $1077500 $1575000 $1950000 O $1150000 During 2020, Sheffield Corp. acquired a mineral mine for $4200000 of which $385000 was ascribed to land value after the mineral has been removed. Geological surveys have indicated that 10 million units of the mineral could be extracted. During 2020, 1480000 units were extracted and 1300000 units were sold. What is the amount of depletion expensed for 2020? $385000 $495950 $546000 $564620
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