4 Perez Company acquires an ore mine at a cost of $2,240,000. It incurs additional costs of $627,200 to access the mine, which is estimated to hold 1,600,000 tons of ore. 210,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $320,000. Calculate the depletion expense from the information given. 02:59:09 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. eBook Depletion Expense General Journal 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 Help Save &

4 Perez Company acquires an ore mine at a cost of $2,240,000. It incurs additional costs of $627,200 to access the mine, which is estimated to hold 1,600,000 tons of ore. 210,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $320,000. Calculate the depletion expense from the information given. 02:59:09 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. eBook Depletion Expense General Journal 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 Help Save &

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A diamond mining company has just purchased a new crystal extraction machine that cost $5000 and has an estimated salvage value of $1000 at the end of its 8-year useful life. What is its depreciation in Year 5 using the SOYD method? Question 19 options: a) $786 b) $655 c) $444 d) $859
11 A sand mixing device costs $48,000. At the end of 5 years, the salvage value is $18,000. Using straight-line depreciation, find out the how much is accumulated depreciation over the 5-year life of the machine? sut of O A. $35000 uestion O B. $30000 OC. $37000 13 A company bought a machine for BD 250,000 which has a useful life of 10 years and can be sold for BD50,000 at the end of its useful life. Determine the depreciation on the 8th year and book value at the end of 8th year using sinking fund if interest is 12%. ut of
12. On July 23 of the current year, Dakota Mining Company pays $7,398,720 for land estimated to contain 8,808,000 tons of recoverable ore. It installs and pays for machinery costing $968,880 on July 25. The company removes and sells 451,000 tons of ore during its first five months of operations ending on December 31. Depreciation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore is mined. Required:Prepare entries to record the following.(a) The purchase of the land.(b) The cost and installation of machinery.(c) The first five months' depletion assuming the land has a net salvage value of zero after the ore is mined.(d) The first five months' depreciation on the machinery.
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16. $ drove the truck 125,000 and 134,000 miles, respectively, to deliver merchandise to its customers. The company During the first two years, SN, Inc., originally purchased the truck for $140,000. If the truck has an estimated life of 5 years or 500,000 miles, with an estimated residual value of $50,000, what amount of depreciation expense should SN record in the second year using the activity-based method? JM Corporation purchased equipment at the beginning of 2015 for $475,000. In 2015, 2016 and 2017, JM depreciated the asset on a straight-line basis with an estimated useful life of 10 years and a $75,000 residual value. What is the BOOK VALUE of the equipment at the beginning of 2018? 17. $ 18. $ AD Enterprises purchased equipment for $400,000 on January 1, year 1. The equipment is expected to have a 10-year life, with a residual value of $30,000 at the end of its service life. Using the double-declining balance method, determine depreciation expense for year 2. 19. $ AD…
Scenario 2: Crotekch Power Sdn. Bhd. installed a diesel-electric unit costing RM50,000 at a remote site because no dependable electric power was available from a public utility five years ago. The company has computed the depreciation by straight-line method with a useful life of 10 years and a zero-salvage value. Annual operation and maintenance expenses are RM16,000 and property taxes and insurance cost another RM3,000 per year. Dependable electric service is now available at an estimated annual cost of RM30,000. The company wishes to know whether it would be more economical to dispose of the diesel-electric unit now, when it can be sold for RM35,000, or to wait five years when the unit would have to be replace anyway (with no Market Value). The company has an effective income tax rate of 50% and tries to limit its capital expenditures to opportunities that will earn at least 15% per year after income tax. What would you recommend?
1. In 20X4, ABC Mining Inc. purchased land for P5,600,000 that had a natural resource supply estimated at 4,000,000 tons. When the natural resources are removed, the land has an estimated value of P640,000. The required restoration cost for the property is estimated to be P800,000. Development and road construction costs on the land were P560,000, and a building was constructed at a cost of P88,000 with an estimated P8,000 salvage value when all the natural resources have been extracted. During 20X5, additional development costs of P272,000 were incurred, but additional resources were not discovered. Production for 20X4 and 20X5 was 700,000 tons and 900,000 tons, respectively. Round depletion and depreciation rates to 2 decimal places. In the year 20X5, the total inventoriable cost is?
N6 A new machine tool is being purchased for $260,000 and is expected to have a $36,000 salvage value at the end of its 5-year useful life. Assume any remaining depreciation is claimed in the last year. Compute the depreciation schedules for this capital asset, using the following methods: (a) Straight-line depreciation (b) MACRS Note: No statement is required for this problem.
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This is business algebra please show your work so I can understand the question. Thank you
Quigley, Inc. purchased a machine 4 years ago for $800,000. The machine is being depreciated on a straight-line basis to a salvage value of zero over its estimated useful life of 10 years. What is the annual depreciation expense on this machine? $800,000 $1,000,000 O $80,000 $900,000 None of the other answers in this list are correct. $70,000 $60,000 $700,000