Bowie Company uses a calendar year and the straight line depreciation method. On December 31, 2018, after adjusting entries were posted, Bowie Company sold a machine which was originally purchased on January 1, 2015. The historical cost was $22,500, the salvage value assumed was $1,000 and the original estimated life was five years.. It was sold for $5,000 cash. Using this information, how much should be recorded on December 31 for the Gain or (Loss)? Round to whole dollars.
Frederick Mining Company owns a large parcel of land which costs $1,100,000. It is estimated to contain 1,600,000 tons of recoverable ore. It is estimated that the recovery of the ore will take 10 years and that after the ore is fully depleted the land will be sold for a market value of $200,000. In 2018, Frederick extracted and sold 125,000 tons of ore. What is the amount of depletion that should be recorded? Round total the nearest whole dollar.
321,403 students got unstuck by Course
Hero in the last week
Our Expert Tutors provide step by step solutions to help you excel in your courses