Larkfield Logging, Corp purchased the rights to 2,500 acres of forest. Larkfield intends to harvest the entire forest over a period of 10 years. At the end of year 10 the forest will be worthless. Larkfield paid $5,000,000 for the land and estimates to deplete the land for the first 5 years as follows. Depletion Schedule Depletion Acres Expense Year 1 150 Year 2 300 Year 3 250 Page 1 Year 4 150 Year 5 100 Required Calculate the depletion rate per acre. Depletion rate per acre Calculate depletion expense for each of the first five years by completing the Depletion Schedule. Record depletion expense for year 1. General Journal DR CR

Larkfield Logging, Corp purchased the rights to 2,500 acres of forest. Larkfield intends to harvest the entire forest over a period of 10 years. At the end of year 10 the forest will be worthless. Larkfield paid $5,000,000 for the land and estimates to deplete the land for the first 5 years as follows. Depletion Schedule Depletion Acres Expense Year 1 150 Year 2 300 Year 3 250 Page 1 Year 4 150 Year 5 100 Required Calculate the depletion rate per acre. Depletion rate per acre Calculate depletion expense for each of the first five years by completing the Depletion Schedule. Record depletion expense for year 1. General Journal DR CR

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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am Warren Company plans to depreciate a new building using the double declining balance depreciation method. The building cost is $780,000. The estimated residual value of the building is $48,000 and it has an expected useful life of 25 years. What is the building's book value at the end of the first year? Grew H Multiple Choice O $717,600 $62,400 $31,200 $33.850 < Prev
Required information [The following information applies to the questions displayed below.] On January 1, the Matthews Band pays $67,400 for sound equipment. The band estimates it will use this equipment for five years and perform 200 concerts. It estimates that after five years it can sell the equipment for $2,000. During the first year, the band performs 55 concerts. Compute the first-year depreciation using the straight-line method. Choose Numerator: 1 Straight-Line Depreciation Choose Denominator: = Annual Depreciation Expense = Depreciation expense =
[The following information applies to the questions displayed below.] On January 1, the Matthews Band pays $68,200 for sound equipment. The band estimates it will use this equipment for five years and perform 200 concerts. It estimates that after five years it can sell the equipment for $2,000. During the first year, the band performs 55 concerts. QS 8-5 (Algo) Units-of-production depreciation LO P1 Compute the first-year depreciation using the units-of-production method. Select formula for the depreciation rate of Units of Production: Calculate the first year depreciation expense: Depreciation per concert Concerts in first year Depreciation in first year
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