Weber Company purchased a mining site for $585,330 on July 1. The company expects to mine ore for the next 10 years and anticipates that a total of 81,102 tons will be recovered. The estimated residual value of the property is $51,152. During the first year, the company extracted 4,503 tons of ore. The depletion expense is a.$32,499.09 b.$29,658.99 c.$53,417.80 d.$51,152.00

Q: Sergei Company purchases land for $4,000,000 from which it expects to extract 2,000,000 tons of…

A: Given that, Cost of land = $4,000,000  Estimated residual value = $400,000  Expected extract tons of…

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: Golden Sales has bought $135,000 in fixed assets on January 1st associated with sales equipment. The…

A: Formula: Straight line method: ( Cost of Asset - salvage value ) / useful life  Depreciable cost =…

Q: On January 13, 2013, Dillo Company purchased a drilling truck for $45,000. Dillo expects the truck…

A: There are different methods are available to compute depreciation expense, like straight-line method…

Q: Wickland Company installs a manufacturing machine in its production facility at the beginning of the…

A: Calculation of the depreciation rate is shown below:

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: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the…

A: Depreciation refers to the reduction in the value of assets due to usage of assets or passage of…

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: 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: Sergei Company purchases land for $4,000,000 from which it expects to extract 2,000,000 tons of…

A: Unit depletion rate = (Cost of the coal mine - residual value) / Estimated tons of coal

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: 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: Pedroni Oil Company purchased packaging equipment on January 8 for $72,000.  The equipment was…

A: Calculation of depreciation expense for 3 years and total depreciation expense: Straight-line…

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: 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: 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: 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: Salter Mining Co. purchased the Northern Tier Mine for $61 million cash. The mine was estimated to…

A: Journal entry - It refers to the process where the business transactions are recorded in the books…

Q: A drilling company purchased a mining site for $450,000 on July 1, 2016. The company expects to mine…

A: Depletion per ton = (Purchase cost of mine - residual value) / Expected tons of mine ore = ($450,000…

Q: An ice machine was purchased for $400,000 with a residual value of $75,000 and a life of 2,500…

A: Assets: Assets are the resources of an organization used for the purpose of business operations.…

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 June 1, Aggie Company purchased equipment for $ 50,000. The equipment has a 7yr life with a…

A: Formulas:

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: Salter Mining Company purchased the Northern Tier Mine for $75 million cash. The mine was estimated…

A: Depletion is an accounting concept which is similar to depreciation but it is mostly used in…

Q: Copy equipment was acquired at the beginning of the year at a cost of $60,040 that has an estimated…

A: A) Depreciable cost = Cost of Equipment - Residual value =$60040 - $5500 =$54540   Depreciable cost…

Q: Underwood’s Miners recently purchased the rights to a diamond mine. It is estimated that there are…

A: Depletion expense = Cost * Extracted for the year / Total Extraction from the mine

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: 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: 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: On January 1, 20x1, DEF Mining Corp. purchased an ore mine at P30,000,000. The cost of exploration…

A: Cost of mine will also include development cost .  Depletion Expense = Cost - Salvage value…

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: The Weber Company purchased a mining site for $580,128 on July 1. The company expects to mine ore…

A: Given, Cost of machone = $580,128 Total tons = 85,978  Depletion expense per ton = (Cost - Salvage…

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: one of the largest mining company, purchased 20 acres of land for P60,000,000 in 2010. The company…

A: Depletion expenses: Expenses that are spent in a certain time to get coal into a coal mine are…

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: 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: 000 tons. In 2018, the company mined 140,000 tons and sold 130,000 tons. The company uses a FIFO…

A: Depletion Expense: The cost allocation method used for natural resources like mining deposits,…

Q: Golden Sales has bought $135,000 in fixed assets on January 1st associated with sales equipment. The…

A: Assets: Assets are the resources of an organization used for the purpose of business operations.…

Q: Golden Sales has bought $135,000 in fixed assets on January 1st associated with sales equipment. The…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/4 years) x 2 = 50%

Q: Dexter Industries purchased packaging equipment on January 8 for $72,000. The equipment was expected…

A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…

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: 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: 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: Depreciable mining equipment costing $100,000 is expected to have a useful life of 120,000 units of…

A: Units of Production method Depreciation  =  Cost Of Asst - Salvage valueEstimated total production…

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…