In January, 2020, Swifty Corporation purchased a mineral mine for $4800000 with removable ore estimated by geological surveys at 2500000 tons. The property has an estimated value of $310000 after the ore has been extracted. The company incurred $1600000 of development costs preparing the mine for production. During 2020, 600000 tons were removed and 450000 tons were sold. What is the amount of depletion that Swifty should expense for 2020?

Q: A company is considering purchasing factory equipment that costs $327340 and is estimated to have no…

A: The cash payback period is calculated as the time it takes for the cumulative net cash flows to…

Q: In 2020, Tableta Company paid P4,000,000 to purchase a land containing a total estimated 160,000…

A: Annual depreciation= (cost of the assets  - residual value) / life of the assets = (P1,500,000-0) /…

Q: In 2012, Ideal Time purchased equipment with a 10 year life valued at $547,000. To install and ship…

A: Total cost of the Equipment = purchased cost + install and ship cost = 547000+10900+7550 = P565,450

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:

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: In March, 2020, Sunland Company purchased a coal mine for $8110000. Removable coal is estimated at…

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

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: Company is planning to purchase an new machine for the amount of P90,000, with an estimated useful…

A: In bailout period we consider the cash flow and salvage value and time period required to recover…

Q: BBB Company operates an oil platform at the Indian Ocean. An oil platform was built by the Company…

A: Annual depreciation= (cost of the assets +  restoration costs - residual value) / life of the assets…

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: Libreville Limited paid $200,000,000 cash for a shopping centre on January 1, 2019. It was…

A: The formula for straight-line depreciation expense: Annual Depreciation expense=Cost-Residual…

Q: On January 1, 2020, Sapphire Mining Company purchased land with valuable natural ore deposits for…

A: The depletion expense refers to the decrease in the value of the natural resource used in the…

Q: ackpot Mining Company operates a copper mine in central Montana. The company paid $1,900,000 in 2021…

A: A journal entry is used to record a business transaction int he accounting records of a business.

Q: On January 2, 2020, the Wally Company purchased land for P 450,000, from which it is estimated that…

A: Depletion is the reduction in value of something due to regular usage.

Q: On Jan. 1, 2020, the construction of a high-tech condominium building was completed for a total cost…

A: Depreciation is the amount of reduction in the cost of the assets due to use of the assets,…

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: On January 2, 2020, the Wally Company purchased land for P 450,000, from which it is estimated that…

A: 1) Unit depletion Rate per ton = (P450,000 + P80,000) - P30,000 / 400,000 tons…

Q: A mining company is trying to evaluate whether to purchase or lease a processing plant. The plant…

A: Present value refers to the intrinsic or fair price of investment. Present value explains the actual…

Q: What is the maximum amount of depreciation this company may claim in 2020? On February 15, they…

A: Depreciation expense: Depreciation expense is the reduction in the particular asset due to its use…

Q: On January 1, 2019, Williams Company purchased a copy machine. The machine costs $160,000, its…

A: Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of the…

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: Mercury Inc. purchased equipment in 2019 at a cost of $400,000. The equipment was expected to…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…

Q: in 2020, Tableta company paid P4,000,000 to purchase a land containing a total estimated 160,000…

A: Annual depreciation= (cost of the assets  - residual value) / life of the assets = (P1,500,000-0) /…

Q: Manji

A: 1. Depletion and Depreciation for 2024 and 2025:The depletion base includes the cost of the mineral…

Q: In March 2020, L&P Corp., a mining and construction company, purchased for $5,600,000 a mine…

A: Wasting assets: These are the assets which will have only a limited useful life and the value of…

Q: Brandon Oil Company recently purchased oil and natural gas reserves in a remote part of Alaska for…

A: Depletion is an expense with depreciation like nature in which the natural assets like minerals,…

Q: urces ed depletion 20 urces ed depletion 21 urces ed depletion er's discount rate was 10%. What is…

A: Requirement 1: Unit Depletion rate per ton = ($500,000 + $ 59,000) - $30,000 ÷ 400,000 tons =…

Q: Compute the total cost of goods sold for 2020.

A: Computation of total cost of goods sold:

Q: On January 2, 2019, Whistler Company purchased land for $490,000, from which it is estimated that…

A: 2019 unit depletion rate = [490,000 + 55,000 - 33,000 ] / 420,000 = 1.22 per ton 2021 unit depletion…

Q: Teitelbaum Corp. plans to buy equipment costing $880,000. In connection with this transaction, old…

A: Net Present Value (NPV) is a method of capital budgeting. It compares the present value of cash flow…

Q: During the year Gambler  acquired an iron ore mine at a cost of $6 million. In addition, when all…

A: GIVEN   During the year Gambler  acquired an iron ore mine at a cost of $6 million. In addition,…

Q: In 2021, the Marion Company purchased land containing a mineral mine for $1,740,000. Additional…

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…

Q: Vincent Limited paid $100,000 to purchase equipment at the beginning of 2020. Vincent Limited…

A: Given: Equipment purchased                      $100,000 Estimated useful life is 5 years or 200,000…

Q: Multiple Choice $41766 $35,369 $44.798 $39,309

A: Accretion expense is generally recognized with respect to asset retirement obligations (AROs). An…

Q: II Jánuary 2019, Straw Corporation purchased a mineral mine for P9,800,000 with removable ore…

A: Depletion cost per unit = (Purchase cost +Cost of preparing - residual value) / Estimated tons