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6 On April 23, 2021. Trevors Mining entered into an agreement with the state of California to obtain the rights to operate a mineral mine in California for $13.0 million. Additional costs and purchases included the following: Preparation of site for excavation Mining equipment Construction of various structures on site $4,550,000 400,000 270,000 4716 After the minerals are removed from the mine, the equipment will be sold for an estimated residual value of $71,500. The structures will be torn down. The mine is expected to produce 1,500,000 tons of ore. After the ore is removed, the land will revert back to the state of California. During 2021. Trevor extracted 310,000 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 Trevors uses the units of production method for both depletion and depreciation? (Do not round your intermediate calculations.) Multiple Choice $3,627,000 $3,694,890 $3.762.780
7 On June 2, 2021, Tabitha Co. purchased a franchise for $571000 by signing a five-year contract. At the end of the five years, the franchise right reverts back to the seller. On September 1, 2023, Tabitha decides to sell the franchise right for $332,000. The company amortizes intangible assets using the straight-line method and records partial.year amortization based on the number of months in service. Assuming the company has a December 31 year- end, what is the gain or loss recorded on the sale of the patent? 07:03 Multiple Choice $103.600 gain $10,600 loss $17.950 gain $239,000 loss
Help Save & Exit 8 Axcel Software began a new development project in 2020. The project reached technological feasibility on June 30, 2021, and was available for release to customers at the beginning of 2022. Development costs incurred prior to June 30, 2021 were $3.280,000, and costs incurred from June 30 to the product release date were $1.480,000. The 2022 revenues from the sale of the new software were $3,556,000, and the company anticipates additional revenues of $6,604,000. The economic life of the software is estimated at four years. Amortization of the software development costs for the year 2022 would be: 17:10 Multiple Choice O $0 $1.942.000 $518,000 $370,000