eys at 2,000,000 tons. The property has an estimated value of $200,000 after the ore has been extracted. The company incurred $1,000,000 of development costs preparing the mine for production. During 2021, 500,000 tons were removed and 400,000
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In January, 2021, Melon Corporation purchased a mineral mine for $3,400,000 with removable ore estimated by geological surveys at 2,000,000 tons. The property has an estimated value of $200,000 after the ore has been extracted. The company incurred $1,000,000 of development costs preparing the mine for production. During 2021, 500,000 tons were removed and 400,000 tons were sold.
What is the amount of depletion that Melon should expense for 2021
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- Gimli Miners recently purchased the rights to a diamond mine. It is estimated that there are one million tons of ore within the mine. Gimli paid $23,100,000 for the rights and expects to harvest the ore over the next ten years. The following is the expected extraction for the next five years. Year 1: 50,000 tons Year 2: 90,000 tons Year 3: 100,000 tons Year 4: 110,000 tons Year 5: 130,000 tons Calculate the depletion expense for the next five years, and create the journal entry for year one.Underwoods Miners recently purchased the rights to a diamond mine. It is estimated that there are two million tons of ore within the mine. Underwoods paid $46,000,000 for the rights and expects to harvest the ore over the next fifteen years. The following is the expected extraction for the next five years. Year 1: 50,000 tons Year 2: 900,000 tons Year 3: 400,000 tons Year 4: 210,000 tons Year 5: 150,000 tons Calculate the depletion expense for the next five years and create the journal entry for year one.Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.
- In January, 2021, Melon Corporation purchased a mineral mine for $3,400,000 with removable ore estimated by geological surveys at 2,000,000 tons. The property has an estimated value of $200,000 after the ore has been extracted. The company incurred $1,000,000 of development costs preparing the mine for production. During 2021, 500,000 tons were removed and 400,000 tons were sold. What is the amount of depletion that Melon should expense for 2021?In January, 2023, Demba Corporation purchased a mineral mine for $3,400,000 with removable ore estimated by geological surveys at 2,000,000 tons. The property has an estimated value of $200,000 after the ore has been extracted. The company incurred $1,000,000 of development costs preparing the mine for production. During 2023, 500,000 tons were removed and 400,000 tons were sold. What is the amount of depletion that Demba should expense for 2023In January 2018 PM Corporation purchased a mineral mine for P14,400,000 with removable ore estimated by geological surveys at 8,640,000 tons. The property has an estimated value of P1,440,000 after the ore has been extracted. The company incurred P4,320,000 of intangible development costs in preparing the property for the extraction of ore. During 2020, 1,080,000 tons were removed and 960,000 were sold. For the year ended December 31, 2020, how much should the company include as depletion in its cost of goods sold? * 1,440,000 1,620,000 1,920,000 2,160,000
- On April 17, 2021, the Loadstone Mining Company purchased the rights to a coal mine. The purchase price plus additional costs necessary to prepare the mine for extraction of the coal totaled $4,500,000. The company expects to extract 900,000 tons of coal during a four-year period. During 2021, 240,000 tons were extracted and sold immediately.Required:1. Calculate depletion for 2021.2. Is depletion considered part of the product cost and included in the cost of inventory (yes/no)? Discuss.On April 17, 2021, the Loadstone Mining Company purchased the rights to a coal mine. The purchase price plus additional costs necessary to prepare the mine for extraction of the coal totaled $4,500,000. The company expects to extract 900,000 tons of coal during a four-year period. During 2021, 240,000 tons were extracted and sold immediately. Required:1. Calculate depletion for 2021.2. Is depletion considered part of the product cost and included in the cost of inventory?In January 2018, HUKAY Mining Corporation purchased a mineral mine for P7,200,000 with removable ore estimated by geological surveys at 4,320,000 tons. The property has an estimated value of P720,000 after the ore has been extracted. HUKAY incurred P2,160,000 of development costs preparing the property for the extraction of ore. During 2018, 540,000 tons were removed and 480,000 tons were sold. For the year ended December 31, 2018, HUKAY included P960,000 of depletion in its cost of goods sold. What should be the amount of depletion to be included in the cost of goods sold? Answer in figures, ignore peso sign.
- In January, 2020, Waterway Industries purchased a mineral mine for $4800000 with removable ore estimated by geological surveys at 2000000 tons. The property has an estimated value of $280000 after the ore has been extracted. The company incurred $1700000 of development costs preparing the mine for production. During 2020, 590000 tons were removed and 470000 tons were sold. What is the amount of depletion that Waterway should expense for 2020? $1062200 $989350 $1790700 $1461700Early in the current year, Tokay Co. purchased the Silverton Mine at a cost of $20,000,000. The mine was estimated to contain 200,000 tons of ore and to have a residual value of $5,000,000 after mining operations are completed. During the year, 105,000 tons of ore were removed from the mine. In this situation: a) The amount of depletion charged to expenses from during 2020 is? b) The Net Book Value of the mine at the end of 2020 is? c) The inventory value of the extracted carats of ore?In January, 2020, Swifty Corporation purchased a mineral mine for $4800000 with removable ore estimated by geological surveys at 2500000 tons. The property has an estimated value of $310000 after the ore has been extracted. The company incurred $1600000 of development costs preparing the mine for production. During 2020, 600000 tons were removed and 450000 tons were sold. What is the amount of depletion that Swifty should expense for 2020?