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An asset was acquired on September 30, 2021, for $109,000 with an estimated five-year life...

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Accounting

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An asset was acquired on September 30, 2021, for $109,000 with an estimated five-year life and $25,000 residual value. The company uses double-declining-balance depreciation. Calculate the gain or loss if the asset was sold on December 31, 2022, for $54,000. Partial-year depreciation is to be calculated. 55 Multiple Choice $15.260 gain $29,860 loss $1,308 gain $4,860 loss Montana Mining Co. (MMC) paid $200 million for the right to explore and extract rare metals from land owned by the state of Montana. To obtain the rights, MMC agreed to restore the land to a suitable condition for other uses after its exploration and extraction activities. MMC incurred exploration and development costs of $60 million on the project MMC has a credit-adjusted risk free interest rate is 9%. It estimates the possible cash flows for restoring the land, three years after its extraction activities begin, as follows: (PV of $1. PVA of $1 (Use appropriate factor(s) from the tables provided.) Cash Outflow Probability $14 million 70% $42 million 308 The asset retirement obligation (rounded) that should be recognized by MMC at the beginning of the extraction activities is: Multiple Choice $10.8 million $33 million

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