how much should the company include as depletion in its cost of goods sold?

Q: in 2024, the marion company purchased land containing a mineral mine for $1,500,000. Additional…

A: Book Value of any asset means the value obtained after subtracting the depreciation amount from the…

Q: On January 2, 2019, Whistler Company purchased land for $530,000, from which it is estimated that…

A: The cost of extracting natural resources from the earth, such as wood, minerals, and oil, is…

Q: The total amount of depletion that Valley should record for 2021 is?

A: The depletion expense is the reduction in value of mines with the tons removed during the period.

Q: On January 1, 2020, Nishinoya Company purchased a mineral mine for P26,400,000 with removable ore…

A: Depreciation , amortization , depletion all means the fall in value of assets due to one reason or…

Q: On January 1, 2015, Lord Company purchased land with valuable natural ore deposits for P5,000,000.…

A: The depletion expense is charged on natural resources. The mining, timber, and oil and gas…

Q: a. How much is the depletion charge in 2022? b. Assuming that of the 300,000 ounces of gold…

A: Depletion refers to the reducing in the value of natural resources of the earth from extraction of…

Q: On January 2020, Mina Company paid the national government a fee in the amount of P129,000,000 for…

A: Government Fees P12,90,00,000 Present value of restoration cost (P10000000 * 0.385) P38,50,000…

Q: On May 1, 2022, Hecala Mining entered into an agreement with the state of New Mexico to obtain the…

A: When the asset is obtained for a period of time, for the purpose of usage and the asset is to be…

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: In March, 2007, ABC Co. purchased a coal mine for P6,000,000. Removable coal is estimated at…

A: Total cost of mine = Purchase costs + Restoration costs + Development costs = P6000000 + 720000 +…

Q: 5. In 2018, IRIS Company paid ₱4,000,000 to purchase land containing a total estimated 160,000 tons…

A: Given information: Cost = ₱4,000,000 Residual value = ₱800,000 Expected tons to be extracted =…

Q: Schefter Mining operates a copper mine in Wyoming. Acquisition, exploration, and development costs…

A: An asset retirement obligation is a legal obligation that is created when a long-lived asset is…

Q: On January 2

A: As per the provision given in IND AS 16, cost of property plant and equipment includes the…

Q: Waterway Corporation acquires a coal mine at a cost of $ 476,000. Intangible development costs total…

A: Depletion: It is often defined as a fall in the value of a natural resource because of its…

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: Z company acquire equipment in 2012 for $317 million. At the time of recogintion of the equipment as…

A: Introduction: Under the straight line method of depreciation, depreciation is charged on the asset…

Q: On January 2, 2019, Whistler Company purchased land for $530,000, from which it is estimated that…

A: Depletion expense allows an owner or the extractor to charge the cost of reserves on the basis of…

Q: On July 1, 2017, Lethargic Company, a calendar year entity, purchased the rights to a mine.  The…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: LM Corporation purchased 20 acres of land for P120,000,000. The company expects to extract 5 million…

A: Purchase price of Land = P120,000,000 Exploration cost = P10,000,000 Dry well cost = P1,600,000…

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: On Jan 1, 20X1 ABC Mining Co. purchased a mine for P2,640,000 with removable ore estimated at…

A: Depletion is the reduction in the value of natural resources due to extraction. In accounting, this…

Q: On June 1, 2021, ABC Company purchased rights to a mine for P30,000,000, of which, P3,000,000 was…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: On January 2020, Mina Company paid the national government a fee in the amount of P129,000,000 for…

A: Government Fees P12,90,00,000 Present value of restoration cost (P10000000 * 0.385) P38,50,000…

Q: REQUIRED: Assume all costs incurred during the exploration and evaluation phases were capitalised,…

A: Maxine Ltd - purchased Mining Property Clarity for $13 Millions  Other Cost incurred are  Right to…

Q: At the beginning of 2017, Cullumber Company acquired a mine for $2,379,400. Of this amount, $122,000…

A: Depletion: It refers to the process of proportionately distributing the cost of the extracting…

Q: LM Corporation purchased 20 acres of land for P120,000,000. The company expects to extract 5 million…

A: Cost of land = P120,000,000 Expected minerals to be extracted = 5,000,000 Salvage value = P6,000,000…

Q: Lipaopao Corporation acquires a coal mine at a cost of p 5,000,000. Intangible development costs…

A: Initial cost of asset will include cost of acquisition, development cost and present value of…

Q: eight years. However, after all the resources are removed, the equipment will be of no use and will…

A: Depreciatioin is charged to record reductiion in value of asset over the period of time.…

Q: Schefter Mining operates a copper mine in Wyoming. Acquisition, exploration, and development costs…

A: An asset retirement obligation is a legal obligation that is created when a long-lived asset is…

Q: At the beginning of 2017, Carla Vista Company acquired a mine for $ 891,000. Of this amount, $…

A: Cost of mine = Total purchase price - Land value + Development costs + restoration costs =…

Q: What are the estimated depletion and depreciation charges for the 7th year?   Depletion Depreciation…

A:

Q: On January 1, 2019, Blossom Corporation acquired a small mine for $20 million along with equipment…

A: Depreciation is the reduction in the worth of fixed tangible asset due to obsolescence or over-use…