20.. Dell r Enterprises purchased equipment for $72,000 on January 1, 2021. The equipment is expected to have a five-year life and a residual value of $6,000.
Using the double-declining-balance method, the book value at December 31, 2022, would be:
A. $14,400.
B. $27,360
C. $24,960
D. $25,920.
21. Using the sum-of-the-years'-digits method, depreciation for 2022 and book value at December 31, 2022, would be: (Do not round depreciation rate per year)
A. $19,200 and $30,800 respectively.
B. $17,600 and $32,400 respectively.
C. $19,200 and $28,800 respectively.
D. $17,600 and $26,400 respectively.
23 An asset was acquired on September 30, 2021, for $100,000 with an estimated five-year life and $20,000 residual value. The company uses double-declining-balance depreciation. Calculate the gain or loss if the asset was sold on December 31, 2022, for $50,000. Partial-year depreciation is to be calculated.
A. $1,200 gain.
B. $14,000 gain.
C. $4,000 loss.
D. $14,000 loss.
24. On April 23, 2021, Phillip Mining entered into an agreement with the state of California to obtain the rights to operate a mineral mine in California for $12 million. Additional costs and purchases included the following:
Preparation of site for excavation $4,800,000
Mining equipment 360,000
Construction of various structures on site 240,000
8After the minerals are removed from the mine, the equipment will be sold for an estimated residual value of $60,000. The structures will be torn down. The mine is expected to produce 1,400,000 tons of ore. After the ore is removed, the land will revert back to the state of California. During 2021, Philips extracted 210,000 tons of ore from the mine. What total amount would be charged to depletion of the mine and depreciation of the mining equipment and structures for 2021, assuming that Phillip uses the units-of-production method for both depletion and depreciation? (Round your final calculations to the nearest whole thousand dollars.)
A. $2,601,000.
B. $2,520,000.
C. $2,610,000.
D. $2,565,000.
.25. Larsen Resources y began a new development project in 2020. The project reached technological feasibility on September 1, 2021, and was available for release to customers at the beginning of 2022. Development costs incurred prior to September 1, 2021, were $4,200,000, and costs incurred from June 30 to the product release date were $1,800,000. The 2022 revenues from the sale of the new software were $3,000,000, and the company anticipates additional revenues of $12,000,000. The economic life of the software is estimated at three years. Amortization of the software development costs for the year 2022 would be:
A.$3600,000.
B. $600,000.
C. $1,400,000.
D. $2,000,000.
