Copper Explorations recently acquired the rights to mine a new site. Equipment and a truck were purchased to begin mining operations at the site. Details of the mining assets follow. Asset Mineral rights Equipment Truck Date of Purchase. Mar. 1/23 Mar. 1/23 Mar. 1/23 Cost $ 69,000 256,800 107,400 Est. Residual 50 0 0 Est. Life 4 yrs 4 yrs 4 yrs Copper's year-end is December 31 and it uses the straight-line method for all mining assets including intangibles. Required: 1. Record amortization and depreciation at December 31, 2023, on the mining assets, including the mineral rights.
Copper Explorations recently acquired the rights to mine a new site. Equipment and a truck were purchased to begin mining operations at the site. Details of the mining assets follow. Asset Mineral rights Equipment Truck Date of Purchase. Mar. 1/23 Mar. 1/23 Mar. 1/23 Cost $ 69,000 256,800 107,400 Est. Residual 50 0 0 Est. Life 4 yrs 4 yrs 4 yrs Copper's year-end is December 31 and it uses the straight-line method for all mining assets including intangibles. Required: 1. Record amortization and depreciation at December 31, 2023, on the mining assets, including the mineral rights.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Copper Explorations recently acquired the rights to mine a new site. Equipment and a truck were purchased to begin mining
operations at the site. Details of the mining assets follow.
Asset
Mineral rights
Equipment
Truck
Date of Purchase.
Mar. 1/23
Mar. 1/23
Mar. 1/231
Cost
$ 69,000
256,800
107,400
Est.
Residual
$0
0
0
Est. Life
4 yrs
4 yrs
4 yrs
Copper's year-end is December 31 and it uses the straight-line method for all mining assets including intangibles.
Required:
1. Record amortization and depreciation at December 31, 2023, on the mining assets, including the mineral rights.
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