depletion expense
Q: Salter Mining Company purchased the Northern Tier Mine for $21 million cash. The mine wasestimated…
A: Depletion: Depletion refers to the process of proportionately distributing the cost of the…
Q: Nash Company purchases equipment on January 1, Year 1, at a cost of $480,000. The asset is expected…
A: Under double declining balance method, Depreciation is deducted at the straight line depreciation…
Q: Hidden Hollow Mining Co. acquired mineral rights for S69,000,000. The mineral deposit is estimated…
A: Formula: Depletion rate per ton = Acquired total mineral rights / Total estimated tons
Q: Early in the current year, Tokay Co. purchased the Silverton Mine at a cost of $15,500,000. The mine…
A: Computation for the book value of the mine at year end is as follows:First we need to calculate the…
Q: Intra-Spect Mining Co. acquired mineral rights for $70,000,000. The mineral deposit is estimated at…
A: a. Depletion rate = $70,000,000 / 50,000,000 = $1.40 per ton b. Amount of depletion expense for the…
Q: Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $587,500. The…
A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear. There are…
Q: Coal Miner Co. acquired coal rights for $100,000,000. It is estimated that there are 2,500,000 tons…
A: What Is Depreciation Depreciation is an accounting method of allocating the cost of a tangible…
Q: Miller Mining acquired rights to a tract of land with the intent of extracting from the land a…
A: Depletion: It can be defined as a reduction or fall in the value of natural resources being used in…
Q: A new year had begun, JK Company, a mining institute, purchased a mineral mine for P56,000,000 with…
A: Depletion refers to the reduction in value. It is the non-cash expense of the business recorded by…
Q: At the beginning of the fiscal year, G&J Company acquired new equipmentat a cost of $100,000.…
A:
Q: A company purchased mineral assets holding approximately 240,000 tons of ore for$960,000. The…
A: Depletion per ton = (Cost of mineral assets - residual value) / Estimated tons of mineral
Q: Weber Company purchased a mining site for $585,330 on July 1. The company expects to mine ore for…
A: Depletion per tons = (Purchased Cost of mining site - estimated residual value) / anticipated tons =…
Q: Colorado Mining paid $495,000 to acquire a mine with 45,000 tons of coal reserves. The following…
A: Depletion charge per unit is calculated by deducting the residual value from the cost of the asset…
Q: The Weber Company purchased a mining site for $510,498 on July 1. The company expects to mine ore…
A: Calculation of Depletion rate per tonne Depletion rate per tonne = Purchase price of mining site/…
Q: A plant asset was purchased on January 1 for $75,000 with an estimated salvage value of $15,000 at…
A: Depreciation as per straight line method = (Cost - residual value) /usefullife
Q: During the current year, Mine View Company incurred P2,000,000 in exploration cost for each of the…
A: Oil exploration expense reported in the income statement for the current year=Number of dry…
Q: Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $662,500. The…
A: Depreciation is a reduction in the value of assets over time due to normal wear and tear,…
Q: Whispering Winds Corp. purchased for $12,385,000 a mine that is estimated to have 49,540,000 tons of…
A: Firstly we shall calculate the depletion expense per ton using the following formula - Depletion…
Q: Galali mining company on April 30, paid BD 1,400,000 for a an ore with a capacity 1,400,000 tonnes…
A: The Numerical has covered the concept of Depletion Expenses. Depletion expense charge on the use of…
Q: The Weber Company purchased a mining site for $534,246 on July 1. The company expects to mine ore…
A: Wasting assets: These are the assets which will have only a limited useful life and the value of…
Q: On January 1, 2018, Lam Company, a calendar year corporation, purchased the rights to a mine. The…
A: Compute the mine value as follows: Mine for depletion=Total purchase price-Allocation to…
Q: A company purchased a mining property containing 15,000,000 tons of ore for $4,875,000. In year 1…
A: Depletion expense is an expense which is charged when there is extraction of natural resources are…
Q: Waylander Coatings Company purchased waterproofing equipment on January 6 for $661,800. The…
A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…
Q: Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $612,500. The…
A: Depreciation: Depreciation is defined as a reduction in the value of assets that occurs over time as…
Q: Equipment was acquired at the beginning of the year at a cost of $650,000. The equipment was…
A: Depreciation: Depreciation is a method of reducing the capitalized cost of long-lived operating…
Q: In 20x1, Newman Company paid P1,000,000 to purchase land containing a total estimated 160,000 tons…
A: Solution: Total cost of land= P1,000,000. Estimated value after mineral have been removed= P200,000…
Q: Equipment was acquired at the beginning of the year at a cost of $625,000. The equipment was…
A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear.There are…
Q: Weber Company purchased a mining site for $617,434 on July 1. The company expects to mine ore for…
A: Depreciation or depletion is a decrease in the value of an asset due to various reasons like wear…
Q: Required information [The following information applies to the questions displayed below.] On July…
A: The depletion expense is charged on natural resources such as mineral, ores, etc. The depreciation…
Q: Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $612,500.
A: Straight-line depreciation method - Straight-line depreciation method charges depreciation expense…
Q: At the beginning of the current year, Nili company purchased a coal mine for 30,000,000. Removable…
A: The depletion expense is charged on coal mine as reduction in value of mine with coal removed.
Q: The Weber Company purchased a mining site for $573,259 on July 1. The company expects to mine ore…
A: For the use of natural resources, depletion expenses is charged (against profits). It is most common…
Q: York Instruments completed the following transactions and events involving its machinery. Year 1…
A: Calculation of Depreciation year wise is as follows: Resultant table:
Q: Salter Mining Company purchased the Northern Tier Mine for $21 million cash. The mine was estimated…
A: Depletion is an accounting concept similar to depreciation, but its uses are in industries that…
Q: Equipment was acquired at the beginning of the year at a cost of $587,500. The equipment was…
A: Solution:- a)Calculation of Depreciation using Straight line method as follows under:- Formula:-…
Q: Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $587,500. The…
A: Straight-line depreciation is a method of depreciation where the depreciation expenses for the life…
Q: Quavo Mining Co. acquired mineral rights for $17,857,500. The mineral deposit is estimated at…
A: Depletion expense per ton = (Cost of mineral rights - residual value) / estimated mineral deposit =…
Q: Rex company constructed a building at a cost of 13,650,000. Weighted-average accumulated…
A: Depreciation is an method to account assets which have undergone through wear and tear over the…
Q: A company purchased mineral assets holding approximately 240,000 tons of ore for $960,000. The…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: In connection with your audit of the ABC Mall Corporation for the year ended December 31, 20X1, you…
A: We are required by the question to calculate the cost of inventory. We have been given details of…
Q: Dow Deep Mining Co acquired mineral rights for $56,000,000. The mineral deposit is estimated at…
A: Formula: Depletion rate per ton = Total mineral rights acquired cost / Estimated Tons
Q: Pharoah Company purchased for $4,543,000 a mine that is estimated to have 45,430,000 tons of ore and…
A: Introduction: Depletion: Depletion expense to be recorded in Income statement. Depletion is…
Q: At the beginning of the current year, Handsome Company purchased a mineral mine for P36,000,000 with…
A: Total cost of mineral mine = purchased costs + development costs = P36,000,000 + P10,800,000 =…
Q: The Weber Company purchased a mining site for $674,927 on July 1. The company expects to mine ore…
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…
Q: At the beginning of current year, Nilli company purchased a coal mine for P30,000,000. Removable…
A: All natural resources that are being acquired by the business loses their value over the period of…
Q: A company used straight-line depreciation for an item of equipment that cost $12,000, had a salvage…
A: Given the following information: Method of depreciation: Straight line method Useful life of…
Q: On August 3, Srini Construction purchased special-purpose equipment at a cost of $1,000,000.The…
A: Depreciation indicates the fall in the historical amount of fixed assets owned by the business due…
Q: Weber Company purchased a mining site for $525,247 on July 1. The company expects to mine ore for…
A: Given, Cost of mining site = $525,247 Residual value = $49,377 Total tons = 85,242 tons Tons…
Q: In connection with your audit of the ABC Mall Corporation for the year ended December 31, 20X1, you…
A: The question is based on the concept of Business Accounting.
Quavo Mining Co. acquired mineral rights for $17,857,500. The mineral deposit is estimated at 48,500,000 tons. During the current year, 10,912,500 tons were mined and sold. Determine the amount of depletion expense for the current year. Round your answer to nearest whole value.
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- A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years. Prepare depreciation schedules reporting the depreciation expense, accumulated depreciation, and book value of the machine for each year under the double-declining-balance and sum-of-the-years-digits methods. For the double-declining-balance method, round the depreciation rate to two decimal places.Hidden Hollow Mining Co. acquired mineral rights for $42,500,000. The mineral deposit is estimated at 50,000,000 tons. During the current year, 11,500,000 tons were mined and sold. a. Determine the depletion rate. If required, round your answer to two decimal places.$fill in the blank 91e68b00e031f88_1 per ton b. Determine the amount of depletion expense for the current year.$fill in the blank 91e68b00e031f88_2 c. Journalize the adjusting entry on December 31 to recognize the depletion expense. If an amount box does not require an entry, leave it blank. Dec. 31 fill in the blank 346c5df8f020fe0_2 fill in the blank 346c5df8f020fe0_3 fill in the blank 346c5df8f020fe0_5 fill in the blank 346c5df8f020fe0_6Earth's Treasures Mining Co. acquired mineral rights for $37,500,000. The mineral deposit is estimated at 30,000,000 tons. During the current year, 9,300,000 tons were mined and sold. Question Content Area a. Determine the depletion rate. If required, round your answer to two decimal places.fill in the blank 1 of 1$ per ton b. Determine the amount of depletion expense for the current year.fill in the blank 1 of 1$ Feedback Area Feedback Question Content Area c. Journalize the adjusting entry on December 31 to recognize the depletion expense. If an amount box does not require an entry, leave it blank. Date Account Debit Credit December 31
- Hidden Hollow Mining Co. acquired mineral rights for S69,000,000. The mineral deposit is estimated at 60,000,000 tons. During the current year, 13,200,000 tons were mined and sold. a. Determine the depletion rate. If required, round your answer to two decimal places. Sfill in the blank d39a0a00ffc1f93_1 per ton b. Determine the amount of depletion expense for the current year. Sfill in the blank d39a0a00ffc1f93_2Intra-Spect Mining Co. acquired mineral rights for $52,000,000. The mineral deposit is estimated at 40,000,000 tons. During the current year, 9,200,000 tons were mined and sold. Question Content Areaa. Determine the depletion rate. If required, round your answer to two decimal places.$fill in the blank 6865550bc008074_1 per ton b. Determine the amount of depletion expense for the current year.$fill in the blank 6865550bc008074_2Question Content Areac. Journalize the adjusting entry on December 31 to recognize the depletion expense. If an amount box does not require an entry, leave it blank. Dec. 31 - Select -- Select - - Select -- Select - eBook Show Me How Question Content Area Impaired Goodwill and Amortization of Patent On April 1, a patent with an estimated useful economic life of 12 years was acquired for $115,200. In addition, on December 31, it was estimated that goodwill of $51,500 was impaired. Question Content Area a. Record the acquisition of patent. If…Quavo Mining Co. acquired mineral rights for $17,857,500. The mineral deposit is estimated at 48,500,000 tons. During the current year, 10,912,500 tons were mined and sold. Determine the amount of depletion expense for the current year. Do not round intermediate calculation and round your answer to nearest whole value.
- Quavo Mining Co. acquired mineral rights for $21,477,500. The mineral deposit is estimated at 69,500,000 tons. During the current year, 6,950,000 tons were mined and sold. a. Determine the amount of depletion expense for the current year. Round intermediate calculations to two decimal places and use rounded amounts in subsequent calculations. Round your answer to the nearest dollar. 2,154,500 b. Illustrate the effects on the accounts and financial statements of the depletion expense. Enter account decreases, cash outflows, and the income statement effects that decrease net income as negative amounts. However, for contra asset accounts, enter account increases as a negative value. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Financial Statement Effects Balance Sheet Assets Liabilities + Stockholders' Equity Mineral rights Accumulated depletion No effect + Retained earnings -2,154,500 X 2,154,500 X…Dow Deep Mining Co acquired mineral rights for $56,000,000. The mineral deposit is estimated at 70,000,000 tons. During the current year, 18,200,000 tons were mined an a. Determine the depletion rate. It required, round your answer to two decina aces A) Depletion rate per ton.Solare Company acquired mineral rights for $285,300,000. The diamond deposit is estimated at 31,700,000 tons. During the current year, 4,700,000 tons were mined and sold. Question Content Area a. Determine the depletion rate. $fill in the blank b14fe7fa701ffba_1 per ton b. Determine the amount of depletion expense for the current year. $fill in the blank b14fe7fa701ffba_2 Question Content Area c. Journalize the adjusting entry to recognize the depletion expense. If an amount box does not require an entry, leave it blank. Dec. 31 - Select - - Select - - Select -
- Quavo Mining Co. acquired mineral rights for $16,500,000. The mineral deposit is estimated at 36,500,000 tons. During the current year, 10,037,500 tons were mined and sold. a. Determine the amount of depletion expense for the current year. Do not round intermediate calculation and round your answer to nearest whole value.$fill in the blank 1 b. Illustrate the effects on the accounts and financial statements of the depletion expense. For decreases in accounts or outflows of cash, enter your answers as negative numbers. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Balance Sheet Assets = Liabilities + Stockholders' Equity - Accumulated depletion + No effect = No effect + Retained earnings fill in the blank 6 fill in the blank 7 fill in the blank 8 fill in the blank 9 Statement of Cash Flows Income Statement No effect fill in the blank 11 Depletion expense…Solare Company acquired mineral rights for $287,200,000. The diamond deposit is estimated at 35,900,000 tons. During the current year, 3,660,000 tons were mined and sold. a. Determine the depletion rate.$fill in the blank 5df5b004305d067_1 per ton b. Determine the amount of depletion expense for the current year.$fill in the blank 5df5b004305d067_2 c. Journalize the adjusting entry to recognize the depletion expense. If an amount box does not require an entry, leave it blank. Dec. 31 fill in the blank 0ae001fa5fd7fc8_2 fill in the blank 0ae001fa5fd7fc8_3 fill in the blank 0ae001fa5fd7fc8_5 fill in the blank 0ae001fa5fd7fc8_6Weber Company purchased a mining site for $690,727 on July 1. The company expects to mine ore for the next 10 years and anticipates that a total of 86,719 tons will be recovered. The estimated residual value of the property is $40,504. During the first year, the company extracted 5,948 tons of ore. The depletion expense is a.$65,022.30 b.$44,598.37 c.$47,376.52 d.$40,504.00