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In 2024, the Marion Company purchased land containing a mineral mine for $1,200,000. Additional costs of $452,000 were incurred to develop the mine. Geologists estimated that 320,000 tons of ore would be extracted. After the ore is removed, the land will have a resale value of $100,000. To aid in the extraction, Marion built various structures and small storage buildings on the site at a cost of $107,200. These structures have a useful life of 10 years. The structures cannot be moved after the ore has been removed and will be left at the site. In addition, new equipment costing $55,200 was purchased and installed at the site. Marion does not plan to move the equipment to another site, but estimates that it can be sold at auction for $4,000 after the mining project is completed. In 2024, 42,000 tons of ore were extracted and sold. In 2025, the estimate of total tons of ore in the mine was revised from 320,000 to 407,500. During 2025, 72,000 tons were extracted, of which 52,000 tons were sold. Required: 1. Compute depletion and depreciation of the mine and the mining facilities and equipment for 2024 and 2025. Marion uses the units-of-production method to determine depreciation on mining facilities and equipment. 2. Compute the book value of the mineral mine, structures, and equipment as of December 31, 2025. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute depletion and depreciation of the mine and the mining facilities and equipment for 2024 and 2025. Marion uses the units-of-production method to determine depreciation on mining facilities and equipment. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar. 2024 2025 Depletion of mineral mine $ 203,700 $ Depreciation of structures $ 14,070 $ 112,180 x 16,455X Depreciation of equipment SA $ 6,720 $ 7,860 x

In 2024, the Marion Company purchased land containing a mineral mine for $1,200,000. Additional costs of $452,000 were incurred to develop the mine. Geologists estimated that 320,000 tons of ore would be extracted. After the ore is removed, the land will have a resale value of $100,000. To aid in the extraction, Marion built various structures and small storage buildings on the site at a cost of $107,200. These structures have a useful life of 10 years. The structures cannot be moved after the ore has been removed and will be left at the site. In addition, new equipment costing $55,200 was purchased and installed at the site. Marion does not plan to move the equipment to another site, but estimates that it can be sold at auction for $4,000 after the mining project is completed. In 2024, 42,000 tons of ore were extracted and sold. In 2025, the estimate of total tons of ore in the mine was revised from 320,000 to 407,500. During 2025, 72,000 tons were extracted, of which 52,000 tons were sold. Required: 1. Compute depletion and depreciation of the mine and the mining facilities and equipment for 2024 and 2025. Marion uses the units-of-production method to determine depreciation on mining facilities and equipment. 2. Compute the book value of the mineral mine, structures, and equipment as of December 31, 2025. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute depletion and depreciation of the mine and the mining facilities and equipment for 2024 and 2025. Marion uses the units-of-production method to determine depreciation on mining facilities and equipment. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar. 2024 2025 Depletion of mineral mine $ 203,700 $ Depreciation of structures $ 14,070 $ 112,180 x 16,455X Depreciation of equipment SA $ 6,720 $ 7,860 x

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In 2024, the Marion Company purchased land containing a mineral mine for $1,200,000. Additional costs of $452,000 were incurred to develop the mine. Geologists estimated that 320,000 tons of ore would be extracted. After the ore is removed, the land will have a resale value of $100,000. To aid in the extraction, Marion built various structures and small storage buildings on the site at a cost of $107,200. These structures have a useful life of 10 years. The structures cannot be moved after the ore has been removed and will be left at the site. In addition, new equipment costing $55,200 was purchased and installed at the site. Marion does not plan to move the equipment to another site, but estimates that it can be sold at auction for $4,000 after the mining project is completed. In 2024, 42,000 tons of ore were extracted and sold. In 2025, the estimate of total tons of ore in the mine was revised from 320,000 to 407,500. During 2025, 72,000 tons were extracted, of which 52,000 tons were sold. Required: 1. Compute depletion and depreciation of the mine and the mining facilities and equipment for 2024 and 2025. Marion uses the units-of-production method to determine depreciation on mining facilities and equipment. 2. Compute the book value of the mineral mine, structures, and equipment as of December 31, 2025. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute depletion and depreciation of the mine and the mining facilities and equipment for 2024 and 2025. Marion uses the units-of-production method to determine depreciation on mining facilities and equipment. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar. 2024 2025 Depletion of mineral mine $ 203,700 $ Depreciation of structures $ 14,070 $ 112,180 x 16,455X Depreciation of equipment SA $ 6,720 $ 7,860 x
Transcribed Image Text:In 2024, the Marion Company purchased land containing a mineral mine for $1,200,000. Additional costs of $452,000 were incurred to develop the mine. Geologists estimated that 320,000 tons of ore would be extracted. After the ore is removed, the land will have a resale value of $100,000. To aid in the extraction, Marion built various structures and small storage buildings on the site at a cost of $107,200. These structures have a useful life of 10 years. The structures cannot be moved after the ore has been removed and will be left at the site. In addition, new equipment costing $55,200 was purchased and installed at the site. Marion does not plan to move the equipment to another site, but estimates that it can be sold at auction for $4,000 after the mining project is completed. In 2024, 42,000 tons of ore were extracted and sold. In 2025, the estimate of total tons of ore in the mine was revised from 320,000 to 407,500. During 2025, 72,000 tons were extracted, of which 52,000 tons were sold. Required: 1. Compute depletion and depreciation of the mine and the mining facilities and equipment for 2024 and 2025. Marion uses the units-of-production method to determine depreciation on mining facilities and equipment. 2. Compute the book value of the mineral mine, structures, and equipment as of December 31, 2025. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute depletion and depreciation of the mine and the mining facilities and equipment for 2024 and 2025. Marion uses the units-of-production method to determine depreciation on mining facilities and equipment. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar. 2024 2025 Depletion of mineral mine $ 203,700 $ Depreciation of structures $ 14,070 $ 112,180 x 16,455X Depreciation of equipment SA $ 6,720 $ 7,860 x
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