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64) A company purchased mining property for $1,837,500 containing an estimated 7,350,000 tons of ore....

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64) A company purchased mining property for $1,837,500 containing an estimated 7,350,000 tons of ore. In Year 1, it mined and sold 857,000 tons of ore. Calculate the depletion expense for Year 1 and prepare the journal entry to record the depletiorn Answer: Depletion Expense Accumulated Depletion 65) A company exchanged an old automobile for a newer model. The old automobile account had a cost of $36,000 and accumulated depreciation of $25,000 as of the exchange date. The new automobile had a cash price of S34,000, but the company was given a $15,000 trade-in allowance and the balance of S19,000 was paid in cash. Prepare the journal entry to record the exchange, if the transaction has commercial substance. Answer: Automobile (new) Accumulated Depreciation-Automobile (old) Automobile (old) Gain on exchange Cash

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