Use the Following Information for Questions

question 46

Multiple Choice

Use the following information for questions.
On January 1, 2011, Edmondton Inc.purchased equipment with a cost of €4,500,000, a useful life of 12 years and no salvage value.The Company uses straight-line depreciation.At December 31, 2011, the company determines that impairment indicators are present.The fair value less cost to sell the asset is estimated to be €3,850,000.The asset's value-in-use is estimated to be €3,500,000.There is no change in the asset's useful life or salvage value.
-In March, 2010, Maley Mines Co.purchased a coal mine for $6,000,000.Removable coal is estimated at 1,500,000 tons.Maley is required to restore the land at an estimated cost of $720,000, and the land should have a value of $630,000.The company incurred $1,500,000 of development costs preparing the mine for production.During 2010, 450,000 tons were removed and 300,000 tons were sold.The total amount of depletion that Maley should record for 2010 is

• A)$1,374,000.
• B)$1,518,000.
• C)$2,061,000.
• D)$2,277,000.

---

Definitions:

Diagnosed

The process of identifying a disease or condition from its signs and symptoms by a health professional.

Increasing Proportion

A term related to the growing ratio or fraction of one quantity compared to another.

Psychologically Disordered

Pertaining to conditions characterized by abnormal thoughts, feelings, or behaviors that may cause distress or impairment in functioning.

Deviant

Refers to behaviors or actions that deviate from the societal norms or expectations.