Don't want AI answer Meet Resources purchased land on March 1, 2018, at a cost of $920,000.It estimated that a total of 60,000 tons of mineral was available for mining.After extracting all the natural resources, the company will be requiredto restore the property to its original condition due to environmentalregulations. It estimates the fair value of this restoration obligation at$120,000. The company expects to sell the property afterwards for$130,000. Before beginning mining operations, the company incurreddevelopmental costs of $250,000.During 2018, the company extracted 30,000 tons of resources. It sold22,000 tons.Compute the following information for 2018:a) Per unit mineral costb) Total material cost of December 31, 2018, inventoryc) Total material cost in cost of goods sold at December 31, 2018

Concept of Depletable CostDepletable cost refers to the total cost that can be allocated to the…

Answered: Meet Resources purchased land on March…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 13P

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The following intangible assets were purchased by Hanna Unlimited: A. A patent with a remaining legal life of twelve years is bought, and Hanna expects to be able to use it for six years. It is purchased at a cost of $48,000. B. A copyright with a remaining life of thirty years is purchased, and Hanna expects to be able to use it for ten years. It is purchased for $70,000. Determine the annual amortization amount for each intangible asset.
Tree Lovers Inc. purchased 2,500 acres of woodland in which it intends to harvest the complete forest, leaving the land barren and worthless. Tree Lovers paid $5,000,000 for the land. Tree Lovers will sell the lumber as it is harvested and it expects to deplete it over ten years (150 acres in year one, 300 acres in year two, 250 acres in year three, 150 acres in year four, and 100 acres in year five). Calculate the depletion expense for the next five years and create the journal entry for year one.
Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.
Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one the company expects the truck to be driven for 26,000 miles; in year two, 30,000 miles; and in year three, 40,000 miles. Consider how the purchase of the truck will impact Montellos depreciation expense each year and what the trucks book value will be each year after depreciation expense is recorded.
Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an estimated useful life of four years or 100,000 hours, and a salvage value of 30,000. This machine will be used 30,000 hours during Year 1, 20,000 hours in Year 2, 40,000 hours in Year 3, and 10,000 hours in Year 4. Dunedin buys equipment frequently and wants to print a depreciation schedule for each assets life. Review the worksheet called DEPREC that follows these requirements. Since some assets acquired are depreciated by straight-line, others by units of production, and others by double-declining balance, DEPREC shows all three methods. You are to use this worksheet to prepare depreciation schedules for the new machine.
Meet Resources purchased land on March 1, 2018, at a cost of $920,000. It estimated that a total of 60,000 tons of mineral was available for mining. After extracting all the natural resources, the company will be required to restore the property to its original condition due to environmental regulations. It estimates the fair value of this restoration obligation at $120,000. The company expects to sell the property afterwards for $130,000. Before beginning mining operations, the company incurred developmental costs of $250,000. During 2018, the company extracted 30,000 tons of resources. It sold 22,000 tons. Compute the following information for 2018: a) Per unit mineral cost b) Total material cost of December 31, 2018, inventory c) Total material cost in cost of goods sold at December 31, 2018
Larkspur Mining Company purchased land on February 1, 2017, at a cost of $1,210,800. It estimated that a total of 54,900 tons of mineral was available for mining. After it has removed all the natural resources, the company will be required to restore the property to its previous state because of strict environmental protection laws. It estimates the fair value of this restoration obligation at $102,600. It believes it will be able to sell the property afterwards for $114,000. It incurred developmental costs of $228,000 before it was able to do any mining. In 2017, resources removed totaled 27,450 tons. The company sold 20,130 tons.Compute the following information for 2017. (a) Per unit mineral cost $ (b) Total material cost of December 31, 2017, inventory $ (c) Total material cost in cost of goods sold at December 31, 2017 $ Click if you would like to Show Work for this question: Open Show Work Please answer all parts of my…
Nash Mining Company purchased land on February 1, 2020, at a cost of $ 914,300. It estimated that a total of 53,400 tons of mineral was available for mining. After it has removed all the natural resources, the company will be required to restore the property to its previous state because of strict environmental protection laws. It estimates the fair value of this restoration obligation at $ 98,100. It believes it will be able to sell the property afterwards for $ 109,000. It incurred developmental costs of $ 218,000 before it was able to do any mining. In 2020, resources removed totaled 26,700 tons. The company sold 19,580 tons.Compute the following information for 2020. (a) Per unit mineral cost $ (b) Total material cost of December 31, 2020, inventory $ (c) Total material cost in cost of goods sold at December 31, 2020 $
Vaughn Mining Company purchased land on February 1, 2025, at a cost of $1,031,100. It estimated that a total of 54,000 tons of mineral was available for mining. After it has removed all the natural resources, the company will be required to restore the property to its previous state because of strict environmental protection laws. It estimates the fair value of this restoration obligation at $99,900. It believes it will be able to sell the property afterwards for $111,000. It incurred developmental costs of $222,000 before it was able to do any mining. In 2025, resources removed totaled 27,000 tons. The company sold 19,800 tons. Compute the following information for 2025. a. Per unit mineral cost $enter a dollar amount per ton /ton b. Total material cost of December 31, 2025, inventory $enter a dollar amount c. Total material cost in cost of goods sold at December 31, 2025 $enter a dollar amount
Alcide Mining Company purchased land on February 1, 2020, at a cost of $1,190,000. It estimated that a total of 60,000 tons of mineral was available for mining. After it has removed all the natural resources, the company will be required to restore the property to its previous state because of strict environmental protection laws. It estimates the fair value of this restoration obligation at $90,000. It believes it will be able to sell the property afterwards for $100,000. It incurred developmental costs of $200,000 before it was able to do any mining. In 2020, resources removed totaled 30,000 tons. The company sold 22,000 tons. Instructions Compute the following information for 2020. a. Per unit material cost. b. Total material cost of December 31, 2020, inventory. c. Total material cost in cost of goods sold at December 31, 2020.
Bonita Mining Company purchased land on February 1, 2025, at a cost of $1,252,100. It estimated that a total of 57,000 tons of mineral was available for mining. After it has removed all the natural resources, the company will be required to restore the property to its previous state because of strict environmental protection laws. It estimates the fair value of this restoration obligation at $108,900. It believes it will be able to sell the property afterwards for $121,000. It incurred developmental costs of $242,000 before it was able to do any mining. In 2025, resources removed totaled 28,500 tons. The company sold 20,900 tons. Compute the following information for 2025. a. b. C. Per unit mineral cost Total material cost of December 31, 2025, inventory Total material cost in cost of goods sold at December 31, 2025 $ $ /ton
Larkspur Mining Company purchased land on February 1, 2025, at a cost of $1,031,100. It estimated that a total of 54,000 tons of mineral was available for mining. After it has removed all the natural resources, the company will be required to restore the property to its previous state because of strict environmental protection laws. It estimates the fair value of this restoration obligation at $99,900. It believes it will be able to sell the property afterwards for $111,000. It incurred developmental costs of $222,000 before it was able to do any mining. In 2025, resources removed totaled 27,000 tons. The company sold 19,800 tons. Compute the following information for 2025. a. Per unit mineral cost $ b. Total material cost of December 31, 2025, inventory $ C. Total material cost in cost of goods sold at December 31, 2025 $ /ton

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