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 Question 6
1 out of 1 points
Of the following costs related to the development of natural resources, which one is not a part of
depletion cost?
 Question 7
1 out of 1 points

Economic factors that shorten the service life of an asset include
 Question 8
1 out of 1 points
On January 1, 2008, Forrest Company purchased equipment at a cost of $130,000. The equipment was
estimated to have a salvage value of $4,000 and it is being depreciated over eight years under the sum-
of-the-years'-digits method. What should be the charge for depreciation of this equipment for the year
ended December 31, 2015?
 Question 9
1 out of 1 points
Torque Co. has equipment with a carrying amount of $1,600,000. The expected future net cash flows
from the equipment are $1,630,000, and its fair value is $1,360,000. The equipment is expected to be
used in operations in the future. What amount (if any) should Torque report as an impairment to its
equipment?

 Question 10
1 out of 1 points
The term "depreciable base," or "depreciation base," as it is used in accounting, refers to