Exercise 11-23 At the beginning of 2017, Cullumber Company acquired a mine for $2,507,200. Of this amount, $119,000 was ascribed to the land value and the remaining portion to the minerals in the mine. Surveys conducted by geologists have indicated that approximately 11,470,000 units of ore appear to be in the mine. Cullumber incurred $202,300 of development costs associated with this mine prior to any extraction of minerals. It also determined that the fair value of its obligation to prepare the land for an alternative use when all of the mineral has been removed was $47,600. During 2017, 2,273,000 units of ore were extracted and 2,249,000 of these units were sold.Compute the following. Your answer is incorrect. Try again. The total amount of depletion for 2017. (Round per unit answer to 2 decimal places, e.g. 0.45 for computational purpose and final answer to 0 decimal places, e.g. 45,892.) Depletion for 2017 $ LINK TO TEXT Your answer is incorrect. Try again. The amount that is charged as an expense for 2017 for the cost of the minerals sold during 2017.(Round per unit answer to 2 decimal places, e.g. 0.45 for computational purpose and final answer to 0 decimal places, e.g. 45,892.) Amount that is charged as an expense for 2017 $ Click if you would like to Show Work for this question: Open Show Work

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Exercise 11-23

At the beginning of 2017, Cullumber Company acquired a mine for $2,507,200. Of this amount, $119,000 was ascribed to the land value and the remaining portion to the minerals in the mine. Surveys conducted by geologists have indicated that approximately 11,470,000 units of ore appear to be in the mine. Cullumber incurred $202,300 of development costs associated with this mine prior to any extraction of minerals. It also determined that the fair value of its obligation to prepare the land for an alternative use when all of the mineral has been removed was $47,600. During 2017, 2,273,000 units of ore were extracted and 2,249,000 of these units were sold.

Compute the following.


	Your answer is incorrect. Try again.

The total amount of depletion for 2017. (Round per unit answer to 2 decimal places, e.g. 0.45 for computational purpose and final answer to 0 decimal places, e.g. 45,892.)

Depletion for 2017

LINK TO TEXT


	Your answer is incorrect. Try again.

The amount that is charged as an expense for 2017 for the cost of the minerals sold during 2017.(Round per unit answer to 2 decimal places, e.g. 0.45 for computational purpose and final answer to 0 decimal places, e.g. 45,892.)

Amount that is charged as an expense for 2017

Click if you would like to Show Work for this question:

Open Show Work

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Property, Plant and Equipment

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions