Reference no: EM132475352

a) Sunland Company exchanges an industrial oven for an industrial freezer. The carrying amount of the industrial oven is $39,400 (cost $65,100 less accumulated depreciation $25,700). The oven's fair value is $24,400 and cash of $4,150 is paid by Sunland in the exchange.

Question 1: Prepare the entry to record the exchange. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

b) Crane Mining Co. purchased a mine for $8.4 million that is estimated to have 32.3 million tonnes of ore and a residual value of $1,940,000. In the first year, 6.3 million tonnes of ore are extracted and 4.3 million tonnes are sold.

Question 2: Record annual depletion for the first year, ended August 31, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round depreciation per unit to 2 decimal places, e.g. 5.27 and final answers to 0 decimal places, e.g. 5,271.)