1 In January 2015 Vorst Co purchased a mineral mine

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1. In January 2015, Vorst Co. purchased a mineral mine for $2,820,000 with removable ore
estimated at 1,200,000 tons. After it has extracted all the ore, Vorst believes it will be able to sell
the property for $300,000. During 2015, Vorst incurred $360,000 of development costs
preparing the mine for production and removed and sold 60,000 tons of ore. In its 2015 income
statement, what amount should Vorst report as depletion?(a) $135,000(b) $144,000(c)
$150,000(d) $159,0002. Turtle Co. purchased equipment on January 2, 2013, for $50,000. The
equipment had an estimated five-year service life with an expected salvage value of $0. Turtle's
policy for five-year assets is to use the double-declining-balance depreciation method for the
first two years of the asset's life and then switch to the straight-line depreciation method. In its
December 31, 2015, balance sheet, what amount should Turtle report as accumulated
depreciation for equipment?(a) $30,000(b) $38,000(c) $39,200(d) $42,000View Solution:
1 In January 2015 Vorst Co purchased a mineral mine

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