Glick Company purchased oil rights on July 1, Year 1 for $2,400,000. A total of 200,000 barrels of oil are expected to be extracted over the assets life, and 30,000 barrels are extracted and sold in Year 1. Which of the following correctly summarizes the effect of the Year 1 depletion expense on the elements of the financial statements?
A. A decrease in assets of $300,000
B. A decrease in assets of $360,000
C. A decrease in stockholders' equity of $200,000
D. An increase in stockholders' equity of $400,000
Answer: B
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On December 31, Strike Company has decided to sell one of its batting cages. The initial cost of the equipment was $215,000 with an accumulated depreciation of $185,000. Depreciation has been taken up to the end of the year. The company found a company that is willing to buy the equipment for $20,000. What is the amount of the gain or loss on this transaction?
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Which element below is a set of processes through which people influence their own emotions and the ways in which they experience and express them?
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