Colorado Mining paid $495,000 to acquire a mine with 45,000 tons of coal reserves. The following statements model reflects Colorado Mining’s financial condition just prior to purchasing the coal reserves. The company extracted 23,625 tons of coal in year 1 and 20,250 tons in year 2. Required Compute the depletion charge per unit. b-1. Compute the depletion expense for years 1 and 2 in a financial statements. b-2. Record the acquisition of the coal reserves and the depletion expense for years 1 and 2 in a financial statements model. The first event is recorded as an example. Req A
Colorado Mining paid $495,000 to acquire a mine with 45,000 tons of coal reserves. The following statements model reflects Colorado Mining’s financial condition just prior to purchasing the coal reserves. The company extracted 23,625 tons of coal in year 1 and 20,250 tons in year 2.
Required
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Compute the depletion charge per unit.
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b-1. Compute the depletion expense for years 1 and 2 in a financial statements.
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b-2. Record the acquisition of the coal reserves and the depletion expense for years 1 and 2 in a financial statements model. The first event is recorded as an example.
- Req A
- Req B1
- Req B2
Compute the depletion charge per unit.
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Compute the depletion expense for years 1 and 2 in a financial statements.
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Record the acquisition of the coal reserves and the depletion expense for years 1 and 2 in a financial statements model. The first event is recorded as an example. (In the Cash Flow column, use OA to designate operating activity, IA for investment activity, or FA for financing activity. If the element is not affected by the event, leave the cell blank. Enter any decreases to account balances and
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