In January, 2020, Waterway Industries purchased a mineral mine for $4800000 with removable ore estimated by geological surveys at 2000000 tons. The property has an estimated value of $280000 after the ore has been extracted. The company incurred $1700000 of development costs preparing the mine for production. During 2020, 590000 tons were removed and 470000 tons were sold. What is the amount of depletion that Waterway should expense for 2020? $1062200 $989350 $1790700 $1461700

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 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: Vaughn Mining Company purchased land on February 1, 2025, at a cost of $1,031,100. It estimated that…

A: Total cost of depletion includes the cost of land and development cost and also includes the fair…

Q: In 2018, Titus paid #6,000,000 to purchase land containing a total estimated 160,000 tons of…

A: Depletion rate per ton= (Initial purchase amount - salvage value] / capacity of extraction of…

Q: How much is the cost of sales related to minerals extracted in 2021 assuming a total of direct labor…

A: Summary of the information provided in the question : cost of mine purchased  = P 6000,000 coal…

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: In January 2019, Straw Corporation purchased a mineral mine for P9,800,000 with removable ore…

A: Depletion expense is the exploration cost and the development cost charged to the income statement.…

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, 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: 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: In 2025, Cullumber Corporation acquired a mineral mine for $3700000 of which $390000 was ascribed to…

A: The depletion expense is charged on the natural resources for the period. The depreciation expense…

Q: On September 30, 2020, Zee Company purchased an equipment for P240,000 to be used for the next 4…

A: Depreciation Expense are not deducted from Cost of the Asset instead they are held in the…

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: In January, 2021, Melon 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 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: In January 2019, Straw Corporation purchased a mineral mine for P9,800,000 with removable ore…

A: Depletion is an accounting concept used by the timber, oil and gas and mining industries to account…

Q: what amount of depletion should be included in cost of goods sold? 3,375,000 O 4,570,000 O 3,427,500…

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

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

A: Cost of mine = Total purchase value - Amount allocable to land = 30000000 - 3000000 = 27,000,000

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 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: 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: depletion expense

A: Depletion expense refers to the quantity of a natural resource that is depleted or used up over a…

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: In 2017, a company acquired a silver mine for P50,000. In 2018, the company constructed a road to…

A: A slow decrease of the asset value which is tangible is depreciation and depletion is such decrease…

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: 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: 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: On July 1, 2019, Amplex Company purchased a coal mine for $2 million. The estimated capacity of the…

A: The answer is stated below:

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

A: Computation of total cost of goods sold:

Q: In 2018, Batman Company ( an IFRS reporter) acquired equipment at a cost of $620,000. The balance of…

A: As per IAS 36 Impairment of assets Recoverable amount is greater of  1.Fair value less cost to sell…

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…