Hidden Hollow Mining Co. acquired mineral rights for $69,000,000. The mineral deposit is estimated at 60,000,000 tons. During the current year, 13,200,000 tons were mined and sold.
Q: Mertz Company purchased land containing an estimated 5 million tons of ore for a cost of $8,800,000.…
A: Depletion is a recurring cost associated with the use of natural resources. As a result, it is used…
Q: Cantor Co. purchased a coal mine for $2,000,000. It cost $500,000 to prepare the coal mine for the…
A: The depletion expense is same as depreciation expense. The depletion rate is charged on natural…
Q: On April 17, 2018, the Loadstone Mining Company purchased the rights to a coal mine. The purchase…
A: 1) Compute depletion expense for the year 2018:
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A: The cost of ore mine will include cost of purchase plus cost incurred to access the mine.
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: On May 1, Star Mines Inc. purchased an ore mine for $7,200,000 to access an estimated 3,732,000 tons…
A: All the cost that are incurred before put to use of asset should be capitalised in the cost of…
Q: Blue Co. acquired coal mines for $86,000,000 on February 10, 20X7 which were estimated to contain…
A: Cost of inventory includes the costs related to the storing of unsold inventories or merchandise…
Q: Weber Company purchased a mining site for $585,330 on July 1. The company expects to mine ore for…
A: Depletion per tons = (Purchased Cost of mining site - estimated residual value) / anticipated tons =…
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: Novak Corporation acquires a coal mine at a cost of $ 831,000. Intangible development costs total $…
A: Total Cost of mine = Total purchase price + Development costs + restoration costs =…
Q: Required information [The following information applies to the questions displayed below.) On July…
A: Depreciation is defined as the reduction of the recorded cost of a fixed asset in a systematic…
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: Perez Company acquires an ore mine at a cost of $3,360,000. It incurs additional costs of $940,800…
A: DEPLETIONThis Method is Specially Suited to Mines, Oil Wells, Quarries, Sandpits and Similar Assets…
Q: Pina Colada Corporation acquires a coal mine at a cost of $ 863,800. Intangible development costs…
A: Solution:- Calculation of Depletion note per ton as follows;- =($863,800+$221,000+$93,000-$120,000)…
Q: On July 23 of the current year, Dakota Mining Company pays $7,469,280 for land estimated to contain…
A: Depletion expense for a period is calculated by using the total number of units generated by the…
Q: For $18,048,000, R.R. Michaels Refining purchased land which their experts believe to contain 18.8…
A: Introduction: Depreciation: A decrease in the value of fixed assets of the company because of usage,…
Q: Perez Company acquires an ore mine at a cost of $3,780,000. It incurs additional costs of $1,058,400…
A: The objective of the question is to calculate the depletion expense for the first year of operation…
Q: In January, 2023, Demba Corporation purchased a mineral mine for $3,400,000 with removable ore…
A: Natural resources deplete you over time in the same way that material goods do due to wear and tear.…
Q: On April 17, 2024, the Loadstone Mining Company purchased the rights to a copper mine. The purchase…
A: Depletion is the non-cash expense used to distribute the cost of extracting resources over the life…
Q: Perez Company acquires an ore mine at a cost of $3,640,000. It incurs additional costs of $1,019,200…
A: Depletion is charged to natural resources as depreciation is charged to fixed assets.
Q: Perez Company acquires an ore mine at a cost of $2,940,000. It incurs additional costs of $823,200…
A: Depletion expense : Depletion expense is the cost that is charged against the profits for the use of…
Q: Montana Mining Company pays $3,234,950 for an ore deposit containing 1,553,000 tons. The company…
A: It's the first step in the double- entry clerk system and involves taking down the financial goods…
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: Last Chance Mine (LCM) purchased a coal deposit for $1,654,350. It estimated it would extract 13,450…
A: Cost and percentage depletion are to be calculated by multiplying the tax year's gross income that…
Q: At the beginning of 2017, Oriole Company acquired a mine for $1,466,200. Of this amount, $104,000…
A: Depletion is charged to record the reduction in value of natural resource over the period of time.…
Q: Montana Mining Company pays $3,021,910 for an ore deposit containing 1,479,000 tons. The company…
A: Depletion: It refers to the allocation of the cost or expense that is incurred by the business in…
Q: In January 2015, Fehr Mining Corporation purchased a mineral mine for $6,061,128 with removable ore…
A: Depletion or depreciation is an account used to allocate capital expenditure on assets over the…
Q: (a) What are the percentage depletion and the cost depletion allowances?
A: Depletion: It refers to the process of proportionately distributing the cost of the extracting…
Q: Castle Company purchased land containing an estimated 2.5 million tons of ore for a cost of…
A: Depletion charge per ton = (Cost of land containing ore - Cost of land without ore) / Estimated tons…
Q: On January 1, Year 1, Gemstone Mining Company (GMC) paid $10,580,000 cash to purchase the rights to…
A: Depletion: It implies a reduction or a gradual decrease in the value of a natural resource being…
Q: and sold immediately. Required: Calculate depletion for 2024. Is depletion considered part of the…
A:
Q: Salter Mining Company purchased the Northern Tier Mine for $21 million cash. The mine was estimated…
A: DEPLETION EXPENSE This Method is Specially Suited to mines, Oil wells, Quarries, Sandpits and…
Q: On April 17, 2016, the Loadstone Mining Company purchased the rights to a coal mine. The purchase…
A: 1.Compute depletion expense for the year 2016.
Q: Perez Company acquires an ore mine at a cost of $2,380,000. It incurs additional costs of $666,400…
A: Depletion is just like depreciation but it is charged on natural resources such as mines etc. It is…
Q: On April 17 of the current year, a mining company purchased the rights to a mine. The purchase price…
A: Requirement:-1 Calculation of the depletion for the current year as follows:- Depletion per ton =…
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 $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: Leroy Mining Company purchased land containing an estimated 10,000,000 tons of ore for a cost of…
A: Depletion charge per ton :— It is calculated by dividing depletable value by total estimated tons of…
Q: Montana Mining Co. pays $3,721,000 for an ore deposit containing 1,525,000 tons. The company…
A:
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: Copy equipment was acquired at the beginning of the year at a cost of $72,000 that has an estimated…
A: The depreciation as per the unit-of-output method is calculated using the below given formula:…
Q: Prepare the entry to record the cost of the ore mine and year-end adjusting entry.
A: S.No Particulars Amount ($) a Cost 3763200 b Salvage Value 420000 c Amount Subject to…
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- A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years. Prepare depreciation schedules reporting the depreciation expense, accumulated depreciation, and book value of the machine for each year under the double-declining-balance and sum-of-the-years-digits methods. For the double-declining-balance method, round the depreciation rate to two decimal places.Hidden Hollow Mining Co. acquired mineral rights for $42,500,000. The mineral deposit is estimated at 50,000,000 tons. During the current year, 11,500,000 tons were mined and sold. a. Determine the depletion rate. If required, round your answer to two decimal places.$fill in the blank 91e68b00e031f88_1 per ton b. Determine the amount of depletion expense for the current year.$fill in the blank 91e68b00e031f88_2 c. Journalize the adjusting entry on December 31 to recognize the depletion expense. If an amount box does not require an entry, leave it blank. Dec. 31 fill in the blank 346c5df8f020fe0_2 fill in the blank 346c5df8f020fe0_3 fill in the blank 346c5df8f020fe0_5 fill in the blank 346c5df8f020fe0_6Hidden Hollow Mining Co. acquired mineral rights for S69,000,000. The mineral deposit is estimated at 60,000,000 tons. During the current year, 13,200,000 tons were mined and sold. a. Determine the depletion rate. If required, round your answer to two decimal places. Sfill in the blank d39a0a00ffc1f93_1 per ton
- Intra-Spect Mining Co. acquired mineral rights for $52,000,000. The mineral deposit is estimated at 40,000,000 tons. During the current year, 9,200,000 tons were mined and sold. Question Content Areaa. Determine the depletion rate. If required, round your answer to two decimal places.$fill in the blank 6865550bc008074_1 per ton b. Determine the amount of depletion expense for the current year.$fill in the blank 6865550bc008074_2Question Content Areac. Journalize the adjusting entry on December 31 to recognize the depletion expense. If an amount box does not require an entry, leave it blank. Dec. 31 - Select -- Select - - Select -- Select - eBook Show Me How Question Content Area Impaired Goodwill and Amortization of Patent On April 1, a patent with an estimated useful economic life of 12 years was acquired for $115,200. In addition, on December 31, it was estimated that goodwill of $51,500 was impaired. Question Content Area a. Record the acquisition of patent. If…Earth's Treasures Mining Co. acquired mineral rights for $37,500,000. The mineral deposit is estimated at 30,000,000 tons. During the current year, 9,300,000 tons were mined and sold. Question Content Area a. Determine the depletion rate. If required, round your answer to two decimal places.fill in the blank 1 of 1$ per ton b. Determine the amount of depletion expense for the current year.fill in the blank 1 of 1$ Feedback Area Feedback Question Content Area c. Journalize the adjusting entry on December 31 to recognize the depletion expense. If an amount box does not require an entry, leave it blank. Date Account Debit Credit December 31Solare Company acquired mineral rights for $285,300,000. The diamond deposit is estimated at 31,700,000 tons. During the current year, 4,700,000 tons were mined and sold. Question Content Area a. Determine the depletion rate. $fill in the blank b14fe7fa701ffba_1 per ton b. Determine the amount of depletion expense for the current year. $fill in the blank b14fe7fa701ffba_2 Question Content Area c. Journalize the adjusting entry to recognize the depletion expense. If an amount box does not require an entry, leave it blank. Dec. 31 - Select - - Select - - Select -
- Backwoods Mining Co. acquired mineral rights for $17,094,000. The mineral deposit is estimated at 122,100,000 tons. During the current year, 18,300,000 tons were mined and sold. Question Content Area a. Determine the amount of depletion expense for the current year. Round the depletion rate to two decimal places.$fill in the blank 512120f9bfd801e_1 Question Content Area b. Journalize the adjusting entry on December 31 to recognize the depletion expense. If an amount box does not require an entry, leave it blank. blank Depletion Expense Depletion Expense Accumulated Depletion Accumulated Depletion Feedback Area Feedback Similar to the journal entry to record depreciation, the journal entry to record depletion affects a contra asset accountSolare Company acquired mineral rights for $287,200,000. The diamond deposit is estimated at 35,900,000 tons. During the current year, 3,660,000 tons were mined and sold. a. Determine the depletion rate.$fill in the blank 5df5b004305d067_1 per ton b. Determine the amount of depletion expense for the current year.$fill in the blank 5df5b004305d067_2 c. Journalize the adjusting entry to recognize the depletion expense. If an amount box does not require an entry, leave it blank. Dec. 31 fill in the blank 0ae001fa5fd7fc8_2 fill in the blank 0ae001fa5fd7fc8_3 fill in the blank 0ae001fa5fd7fc8_5 fill in the blank 0ae001fa5fd7fc8_6Subject:
- Quavo Mining Co. acquired mineral rights for $21,477,500. The mineral deposit is estimated at 69,500,000 tons. During the current year, 6,950,000 tons were mined and sold. a. Determine the amount of depletion expense for the current year. Round intermediate calculations to two decimal places and use rounded amounts in subsequent calculations. Round your answer to the nearest dollar. 2,154,500 b. Illustrate the effects on the accounts and financial statements of the depletion expense. Enter account decreases, cash outflows, and the income statement effects that decrease net income as negative amounts. However, for contra asset accounts, enter account increases as a negative value. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Financial Statement Effects Balance Sheet Assets Liabilities + Stockholders' Equity Mineral rights Accumulated depletion No effect + Retained earnings -2,154,500 X 2,154,500 X…Depletion Hidden Hollow Mining Co. acquired mineral rights for $69,000,000. The mineral deposit is estimated at 60,000,000 tons. During the current year, 13,200,000 tons were mined and sold. a. Determine the depletion rate. If required, round your answer to two decimal places.$fill in the blank d39a0a00ffc1f93_1 per ton b. Determine the amount of depletion expense for the current year.$fill in the blank d39a0a00ffc1f93_2 Feedback Similar to the units-of-production method to depreciate a fixed asset, the depletion rate that is calculated stays constant no matter how much of the natural resource is extracted. c. Journalize the adjusting entry on December 31 to recognize the depletion expense. If an amount box does not require an entry, leave it blank. Dec. 31 Depletion Expense fill in the blank 1c7c11ffcfaff92_2 fill in the blank 1c7c11ffcfaff92_3 Accumulated Depletion fill in the blank 1c7c11ffcfaff92_5 fill in the blank 1c7c11ffcfaff92_6Depletion Hidden Hollow Mining Co. acquired mineral rights for $69,000,000. The mineral deposit is estimated at 60,000,000 tons. During the current year, 13,200,000 tons were mined and sold. a. Determine the depletion rate. If required, round your answer to two decimal places.$fill in the blank d39a0a00ffc1f93_1 per ton b. Determine the amount of depletion expense for the current year.$fill in the blank d39a0a00ffc1f93_2 c. Journalize the adjusting entry on December 31 to recognize the depletion expense. If an amount box does not require an entry, leave it blank. Dec. 31 Depletion Expense fill in the blank 1c7c11ffcfaff92_2 fill in the blank 1c7c11ffcfaff92_3 Accumulated Depletion fill in the blank 1c7c11ffcfaff92_5 fill in the blank 1c7c11ffcfaff92_6