Perez Company acquires an ore mine at a cost of $2,660,000. It incurs additional costs of $744,800 to access the mine, which is estimated to hold 1,900,000 tons of ore. 225,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $380,000. Calculate the depletion expense from the information given. 1. & 2. Prepare the entry to record the cost of the ore mine and year-end adjusting entry.
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: Perez Company acquires an ore mine at a cost of $1,400,000. It incurs additional costs of $400,000…
A: Req-1 Cost ($1400000 + $400000) $18,00,000 Salvage $2,00,000 Amount subjected to depletion…
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: Mareos Company purchased for $3,800,000 a mine estimated to contain 3,000,000 tons of ore. When the…
A: Depreciation per ton (Units of production method) =(cost of Asset - salvage value ) / Estimated…
Q: Perez Company acquires an ore mine at a cost of $1,680,000. It incurs additional costs of $470,400…
A: The cost of ore mine will include cost of purchase plus cost incurred to access the mine.
Q: For $42,950,000, Wesco Developers purchased land which their experts believe to contain 28.5 million…
A: Formula used for calculation: Depletion expense = ( Asset cost - Salvage value ) / Total estimated…
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: Bedox during the year purchased a coal mine for 2,000,000. It cost 500,000 to prepare the coal mine…
A: Depletion rate per ton for the coal mine can be computed with the purchase cost where it was…
Q: Vesco Mineral Resources purchased mineral rights to land in the foothills of the Santa Cristo…
A: Depletion per ton = (Cost of mineral rights to land - Residual value) / Estimated tons of mineralss…
Q: Bramble Corporation acquires a coal mine at a cost of $456,000. Intangible development costs total…
A: Depletion Expenses:- For the use of Natural Resources, this is an expense that gets charged and…
Q: Montana Mining Company pays $3,478,510 for an ore deposit containing 1,560,000 tons. The company…
A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…
Q: For $42,950,000, Wesco Developers purchased land which their experts believe to contain 28.5 million…
A: Formula: Depletion expense per unit = ( Asset cost - Salvage value ) / Estimated Tons
Q: Tamarisk Corporation acquires a coal mine at a cost of $464,000. Intangible development costs total…
A: Depletion expense = (Cost - Salvage value) * coal extracted / Total coal estimated to be available =…
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: Novak Corporation acquires a coal mine at a cost of $ 831,000. Intangible development costs total $…
A: Total Cost of mine = Total purchase price + Development costs + restoration costs =…
Q: In March, 2007, ABC Co. purchased a coal mine for P6,000,000. Removable coal is estimated at…
A: Total cost of mine = Purchase costs + Restoration costs + Development costs = P6000000 + 720000 +…
Q: Pina Colada Corporation acquires a coal mine at a cost of $ 863,800. Intangible development costs…
A: Solution:- Calculation of Depletion note per ton as follows;- =($863,800+$221,000+$93,000-$120,000)…
Q: Perez Company acquires an ore mine at a cost of $3,640,000. It incurs additional costs of $1,019,200…
A: Depletion is charged to natural resources as depreciation is charged to fixed assets.
Q: On July 1, 2020, FREESIA Company purchased the rights to a mine for ₱13,200,000, of which ₱1,200,000…
A: Depreciation is charged to record reduction in value of asset over the period of time.
Q: In January, 2004, Nixon Corporation purchased a mineral mine for P6,800,000 with removable ore…
A: Depletion Expense: Depletion expense is determined to record the exhaustion of natural resources. It…
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: LM Corporation purchased 20 acres of land for P120,000,000. The company expects to extract 5 million…
A: Purchase price of Land = P120,000,000 Exploration cost = P10,000,000 Dry well cost = P1,600,000…
Q: Castle Company purchased land containing an estimated 2.5 million tons of ore for a cost of…
A: Depletion charge per ton = (Cost of land containing ore - Cost of land without ore) / Estimated tons…
Q: LM Corporation purchased 20 acres of land for P120,000,000. The company expects to extract 5 million…
A: Cost of land = P120,000,000 Expected minerals to be extracted = 5,000,000 Salvage value = P6,000,000…
Q: Pronghorn Corporation acquires a coal mine at a cost of $484,000. Intangible development costs total…
A:
Q: The Weber Company purchased a mining site for $1,750,000 on July 1. The company expects to mine ore…
A: Depletion is a charge or expense on a fixed asset. It is similar to depreciation expense. The only…
Q: Sunland Mining Company has purchased a tract of mineral land for $1,134,000. It is estimated that…
A: Depletion is the diminution in the value of the mining resources after their extraction and…
Q: During the year Gambler acquired an iron ore mine at a cost of $6 million. In addition, when all…
A: GIVEN During the year Gambler acquired an iron ore mine at a cost of $6 million. In addition,…
Q: What are the estimated depletion and depreciation charges for the 7th year? Depletion Depreciation…
A:
Q: LM Corporation purchased 20 acres of land for P120,000,000. The company expects to extract 5 million…
A: Purchase price of land = P120,000 Expected tons of minerals to be extracted = 5,000,000 Residual…
Q: Montana Mining Co. pays $3,721,000 for an ore deposit containing 1,525,000 tons. The company…
A:
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: LM Corporation purchased 20 acres of land for P120,000,000. The company expects to extract 5 million…
A: LM Corporation's Purchased 20 acres of land = P120000000 Company expects the extract of minerals = 5…
Q: Billings Corporation acquires a coal mine at a cost of $2,000,000. Intangible development costs…
A: Depletion cost per ton = (Cost of the Coal mine - Residual value) / Estimated quantity of coal…
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: MINA MINING CO. has acquired a tract of mineral land for P50,000,000. Mina Mining estimates that…
A: "As per the policy of our company, we are allowed to answer only the first three sub-parts in case…
Q: Crane Corporation acquires a coal mine at a cost of $404,000. Intangible development costs total…
A: The question is based on the concept of Journal Entry.
Q: At the beginning of Year 1, Ithaca Incorporated purchased land for $1,500,000 from which it expects…
A: Depletion is the process by which the cost of natural resources such as oil reserves, mineral…
Q: Montana Mining Co. pays $3,926,550 for an ore deposit containing 1,572,000 tons. The company…
A: Depletion expense of Ore mine = Cost of Ore mine x Tons of Ore mines and sold / Total Ore deposit…
Q: Montana Mining Company pays $4,771,370 for an ore deposit containing 1,502,000 tons. The company…
A: Depletion and Depreciation Method For Calculating the Depletion method in ore extraction the total…
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: On July 23 of the current year, Dakota Mining Co. pays $4,715,000 for land estimated to contain…
A: Hi student Since there are multiple sub parts, we will answer only first three sub parts.
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: Sergei Company purchases land for $4,000,000 from which it expects to extract 2,000,000 tons of…
A: Introduction: Depletion: Decreasing value of assets over its useful life period called as Depletion.…
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: Acme Energy, Inc. purchased land containing 28.1 million tons of lignite for $12.926.000. It cost…
A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear. There are…
Q: In January 2022, Proton Mining Corporation purchased a minera mine for P4,200,000 with removable ore…
A: Under the units-of-activity method of depreciation, the asset's cost (less any salvage value) is…
can you please check my work
Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate the depreciation expense with the help of the double decline method, straight-line method, production method, etc.
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- 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.Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000 hours, the company expects to sell the asset for 150,000. What is the depreciation rate per hour based on activity?Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for 120,000 miles. Montello uses the units-of-production depreciation method and in year one it expects to use the truck for 23,000 miles. Calculate the annual depreciation expense.
- 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.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 the company expects the truck to be driven for 26,000 miles; in year two, 30,000 miles; and in year three, 40,000 miles. Consider how the purchase of the truck will impact Montellos depreciation expense each year and what the trucks book value will be each year after depreciation expense is recorded.Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an estimated useful life of four years or 100,000 hours, and a salvage value of 30,000. This machine will be used 30,000 hours during Year 1, 20,000 hours in Year 2, 40,000 hours in Year 3, and 10,000 hours in Year 4. With DEPREC5 still on the screen, click the Chart sheet tab. This chart shows the accumulated depreciation under all three depreciation methods. Identify below the depreciation method that each represents. Series 1 _____________________ Series 2 _____________________ Series 3 _____________________ When the assignment is complete, close the file without saving it again. Worksheet. The problem thus far has assumed that assets are depreciated a full year in the year acquired. Normally, depreciation begins in the month acquired. For example, an asset acquired at the beginning of April is depreciated for only nine months in the year of acquisition. Modify the DEPREC2 worksheet to include the month of acquisition as an additional item of input. To demonstrate proper handling of this factor on the depreciation schedule, modify the formulas for the first two years. Some of the formulas may not actually need to be revised. Do not modify the formulas for Years 3 through 8 and ignore the numbers shown in those years. Some will be incorrect as will be some of the totals. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as DEPRECT. Hint: Insert the month in row 6 of the Data Section specifying the month by a number (e.g., April is the fourth month of the year). Redo the formulas for Years 1 and 2. For the units of production method, assume no change in the estimated hours for both years. Chart. Using the DEPREC5 file, prepare a line chart or XY chart that plots annual depreciation expense under all three depreciation methods. No Chart Data Table is needed; use the range B29 to E36 on the worksheet as a basis for preparing the chart if you prepare an XY chart. Use C29 to E36 if you prepare a line chart. Enter your name somewhere on the chart. Save the file again as DEPREC5. Print the chart.
- Perez Company acquires an ore mine at a cost of $2,940,000. It incurs additional costs of $823,200 to access the mine, which is estimated to hold 2,100,000 tons of ore. 235,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $420,000. Calculate the depletion expense from the information given. 1. & 2. Prepare the entry to record the cost of the ore mine and year-end adjusting entry. Complete this question by entering your answers in the tabs below. Depletion Expense Calculate the depletion expense from the information given. (Round "Depletion per unit" to 3 decimal places.) General Journal Cost Salvage Amount subject to depletion Total units of capacity Depletion per unit Units extracted and sold in period Depletion expensePerez Company acquires an ore mine at a cost of $3,640,000. It incurs additional costs of $1,019,200 to access the mine, which is estimated to hold 2,600,000 tons of ore. 260,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $520,000. Calculate the depletion expense from the information given. 1. & 2. Prepare the entry to record the cost of the ore mine and year-end adjusting entry. Complete this question by entering your answers in the tabs below. Depletion Expense General Journal Calculate the depletion expense from the information given. (Round "Depletion per unit" to 3 decimal places.) Cost Salvage Amount subject to depletion Total units of capacity Depletion per unit Units extracted and sold in period Depletion expense Complete this question by entering your answers in the tabs below. Depletion Expense…Perez Company acquires an ore mine at a cost of $3,780,000. It incurs additional costs of $1,058,400 to access the mine, which is estimated to hold 2,700,000 tons of ore. 265,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $540,000. Calculate the depletion expense from the information given. 1. & 2. Prepare the entry to record the cost of the ore mine and year-end adjusting entry.
- Perez Company acquires an ore mine at a cost of $3,360,000. It incurs additional costs of $940,800 to access the mine, which is estimated to hold 2,400,000 tons of ore. 250,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $480,000. Calculate the depletion expense from the information given. 1. & 2. Prepare the entry to record the cost of the ore mine and year-end adjusting entry. Complete this question by entering your answers in the tabs below. Depletion Expense General Journal X Answer is not complete. Calculate the depletion expense from the information given. Note: Round "Depletion per unit" to 3 decimal places. Cost Salvage Amount subject to depletion Total units of capacity Depletion per unit Units extracted and sold in period Depletion expense $ 4,300,800 (480,000) $ 2,400,000 1.592 250,000 Depletion Expense General Journal >Barton Corporation acquires a coal mine at a cost of $1,800,000. Intangible development costs total $360,000. After extraction has occurred, Barton must restore the property (estimated fair value of the obligation is $180,000), after which it can be sold for $210,000. Barton estimates that 5,000 tons of coal can be extracted. What is the amount of depletion per ton? a. $426 b. $384 c. $468 d. $360Perez Company acquires an ore mine at a cost of $2,380,000. It incurs additional costs of $666,400 to access the mine, which is estimated to hold 1,700,000 tons of ore. 215,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $340,000. Calculate the depletion expense from the information given. record the cost of the o mine and year end adjusting entry