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Question 6 1 out of 1 pointsOf the following costs related to the development of natural resources, which one is nota 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 pointsOn 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 pointsTorque 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 pointsThe term "depreciable base," or "depreciation base," as it is used in accounting, refers to