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.
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: Samson Company applies revaluation accounting to plant assets with a carrying value of P800,000, a…
A: Given carrying value = P 800,000 Depreciation under straight line method when there is no residual…
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: 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: Perdue Company purchased equipment on April 1 for $270,000. The equipment was expected to have a…
A: Depreciation: When a new fixed asset is purchased, it does not have the price that was at the time…
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: 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: Equipment was acquired at the beginning of the year at a cost of $637,500. The equipment was…
A: DDB is the method that counts as an expense more quickly when compared to SLM that uses same amount…
Q: Dexter Industries purchased packaging equipment on January 8 for $218,000. The equipment was…
A: Working for Part-1: Straight line depreciation expense = (Cost - Residual Value) / Years = ($218,000…
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: At the beginning of its fiscal year, Koeplin Corporation purchased equipment for $50,000. At the end…
A: Here, difference between the fair value and cost of asset is treated as depreciation. Depreciation…
Q: Weber Company purchased a mining site for $690,727 on July 1. The company expects to mine ore for…
A: b.$44,598.37
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: At December 31, 20X0, the following existed in the records of Loren Company: Fixed Assets -…
A: Depreciation is amortization of the cost of fixed assets over its useful life.
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: double-declining-balance method
A: Double declining balance method refers to the accelerated form of depreciation which implies that…
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: Equipment was acquired at the beginning of the year at a cost of $537,500. The equipment was…
A: Year Book value Depreciation Accumulated Depreciation Book value 1 $537,500 $119,444.4444 $119,444…
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: OliverCompany purchased tool sharpening equipment on October 1 for $138,000. The equipment was…
A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…
Q: On July 1, 2022, ABC Company, (using a calendar year), purchased the rights to a mine. The total…
A: Depletion: It is the cost a company spends in the process of mining natural resources from the…
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: On February 19 of the current year, Quartzite Co. pays $5,400,000 for land estimated to contain 4…
A: Since there are multiple sub parts in the question, answer will be given for first three sub parts…
Q: Equipment was acquired at the beginning of the year at a cost of $465,000. The equipment was…
A: a. Calculate the depreciation expense for the first year under straight line method.
Q: depletion expense
A: Depletion expense is the cost of extracting natural resources. It is written off against revenue.
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: Salter Mining Company purchased the Northern Tier Mine for $50 million cash. The mine was estimated…
A: DEPLETION PER ORE = (COST - RESIDUAL VALUE) / NUMBER OF TOTAL TONS OF ORE = ($50 MILLION - $1.5…
Q: SMC purchased an equipment for P53,000 and paid P1,500 for freight and delivery charges to the job…
A: Total value of asset (V) = Purchase cost + Freight and delivery cost = P 53000 + P 1500 = P 54500…
Q: Pinewood Corporation purchased a piece of equipment for S70,000. It estimated an 8-year life and a…
A: Answer 1) Calculation of Depreciation expense as per Original Estimate Annual depreciation expense =…
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: Colorado Mining paid $686,000 to acquire a mine with 49,000 tons of coal reserves. The financial…
A: Total tons used in year 1 and 2=25,725+22,050=47,775
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: Layton Company purchased tool sharpening equipment on October 1 for $108,000. The equipment was…
A: Double declining method is an accelerated method of depreciation. Companies use this method when…
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: 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: In January, 2004, Nixon Corporation purchased a mineral mine for P6,800,000 with removable ore…
A: The depletion expense is charged on mines on the basis of units of mines extracted.
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: Dexter Industries purchased packaging equipment on January 8 for $116,600. The equipment was…
A: Introduction: Depreciation occurs when assets lose value over time until the asset's worth is zero…
Q: At the beginning of the year, a company acquired a patent for $830,000, and also a trademark for…
A: Note: Trademark is not amortized because it is considered to have an infinite useful life.
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…
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.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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.Earth'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 31Hidden 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_6
- 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…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…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_2
- Intra-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…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.Backwoods Mining Co. acquired mineral rights for $17,094,000. The mineral deposit is estimated at 122,100,000 tons. During the current year, 18,300,000 tons were mined and sold. Question Content Area a. Determine the amount of depletion expense for the current year. Round the depletion rate to two decimal places.$fill in the blank 512120f9bfd801e_1 Question Content Area b. Journalize the adjusting entry on December 31 to recognize the depletion expense. If an amount box does not require an entry, leave it blank. blank Depletion Expense Depletion Expense Accumulated Depletion Accumulated Depletion Feedback Area Feedback Similar to the journal entry to record depreciation, the journal entry to record depletion affects a contra asset account
- 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_6Glacier Mining Co. acquired mineral rights for $494,000,000. The mineral deposit is estimated at 475,000,000 tons. During the current year, 31,500,000 tons were mined and sold. A. Determine the depletion rate. Round your answer to two decimal places. B. Determine the amount of depletion expense for the current year. C. Journalize the adjusting entry on December 31 to recognize the depletion expense. Refer to the Chart of Accounts for exact wording of account titles.Alaska Mining Co. acquired mineral rights for $24,992,000. The mineral deposit is estimated at 113,600,000 tons. During the current year, 17,050,000 tons were mined and sold. A. Determine the amount of delpletion expense for the current year. Round the depletion rate to two decimal rates. B. Journalize the adjacent entry on December 31 to recognize the depletion expenses. If an amount box does not require an entry, leave blank.