Question

1.A fixed asset with a cost of $30,000 and accumulated depreciation of $25,000 is sold for $3,500. What is the amount of gain or loss on disposal of the fixed asset?

2.  A company purchased an oil well for $25 million. It is estimated that 10 million barrels can be extracted from the well. Determine depletion expense assuming 3 million barrels are extracted and sold during the year.

3.  The following data was adapted from recent financial statements of Hammond Corporation:

2. A company purchased an oil well for 25 million. It is estimated that 10 million barrels can be extracted from the well Determine depletion expense assuming 3 million barrels are extracted and sold during the year. a.$7,350,000 b.$7,500,000 c. $5,000,000 d.$7,650,000 a X

Answer 1