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Ch11QuizSol - Quiz#8 Chapter 11 Solution 1 What...

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Quiz #8 - Chapter 11 - Solution 1. What category(ies) of investments is/are marked-to-market a. trading securities d. both available-for-sale and trading securities b. available-for-sale securities e. both trading and held-to-maturity securities c. held-to-maturity securities 2. On July 1, 2009, Rockpit Mining Company purchased a bauxite mine for $12,000,000. At the time of the purchase, Rockpit estimated that the mine contained 800,000 tons of bauxite. During the rest of the year, Rockpit mined 110,000 tons of ore, but only sold 100,000 tons of it. What amount of depletion expense (recorded as CGS) will end up on Rockport’s income statement for the year ending 12/31/09? $1,500,000 12,000,000 / 800,000 = 15 / ton 15 * 100,000 (amount sold) = 1,500,000 Use the following information for questions 3 - 5 Pegasus Company purchased equipment on 1/1/06 at a cost of $128,000. The equipment is expected to have a useful life of 5 years and a residual value of $3,000. 3.
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