Mineral World recognizes $20 depletion for each ton of oremined. During the current year the company mined 600,000tons but sold only 500,000 tons, as it was attempting tobuild up inventories in anticipation of a possible strike byemployees. How much depletion should be deducted fromrevenue of the current year?

Q: old Mining Company has purchased a tract of mineral land for $972,000. It is estimated that this…

A: Depletion is used in the mining and depletion is decrease in value of mines due to extraction of…

Q: Mertz Company purchased land containing an estimated 5 million tons of ore for a cost of $8,800,000.…

A: Depletion is a recurring cost associated with the use of natural resources. As a result, it is used…

Q: Sergei Company purchases land for $4,000,000 from which it expects to extract 2,000,000 tons of…

A: Given that, Cost of land = $4,000,000  Estimated residual value = $400,000  Expected extract tons of…

Q: Montana Mining Company pays $4,144, 270 for an ore deposit containing 1,446, 000 tons. The company…

A: Depletion is helpful to make an allocation of the cost of extraction of natural resources over…

Q: A machine costing $546,750 was purchased May 1. The machine should be obsolete after three years…

A: Depreciation expense is the reduction in the particular asset due to its use or with the passage of…

Q: Sergei Company purchases land for $4,000,000 from which it expects to extract 2,000,000 tons of…

A: Unit depletion rate = (Cost of the coal mine - residual value) / Estimated tons of coal

Q: Novak Corp. purchased for $5,829,200 a mine that is estimated to have 44,840,000 tons of ore and no…

A: DEPLETIONThis Method is Specially Suited to Mines, Oil Wells, Quarries, Sandpits and Similar Assets…

Q: Equipment for immersion cooling of electronic components has an installed value of $188,000 with an…

A: Business organizations are required to charge the depreciation expense so that the assets are shown…

Q: At year-end XYZ Company has an in-process construction project with costs totaling $10,000,000. It…

A: Under the percentage-of-completion method, revenue, cost, and gross profit are recognized each…

Q: Required information For the last 10 years, Am-Mex Coal has used the cost depletion factor of $2,500…

A: In terms of accountancy, depletion can be defined as a method of reducing the value of a natural…

Q: 11) On April 1, a company acquired equipment at the cost of $525,400. The equipment is expected to…

A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…

Q: Required information [The following information applies to the questions displayed below.) On July…

A: Depreciation is defined as the reduction of the recorded cost of a fixed asset in a systematic…

Q: In this week we are discussing the different types of depreciation methods; straight line and double…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: Galali mining company on April 30, paid BD 1,400,000 for a an ore with a capacity 1,400,000 tonnes…

A: The Numerical has covered the concept of Depletion Expenses. Depletion expense charge on the use of…

Q: If 40,000 units were produced in 20X1 and 60,000 were produced in 20X2, what amount of accumulated…

A: The correct option is  C. $150,000

Q: Pharoah Company purchased for $4,543,000 a mine that is estimated to have 45,430,000 tons of ore and…

A: Introduction: Depletion: Decreasing value of assets over its useful life period called as Depletion.…

Q: On April 2, 2015, Montana Mining Co. pays $4,170,260 for an ore deposit containing 1,438,000 tons.…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: News and is calculated to hold 350.000 barrels of oll There is no residual value Which journal entry…

A: The depreciation expense is recorded for the fixed assets of the business. The depletion expense is…

Q: ! Required information [The following information applies to the questions displayed below.] On July…

A: The first step is to record the purchase of the land. The land is purchased for $8,027,760. This is…

Q: Pado apo

A: The objective of the question is to calculate the depreciation of the machinery used in mining…

Q: 3. Given the following cost information about a fixed asset, calculate depreciation expense for its…

A: a. Cost of the truck = $75,000 Salvage value = $3,000Useful life = 5 yearsThe depreciation expense…

Q: Montana Mining Company pays $3,021,910 for an ore deposit containing 1,479,000 tons. The company…

A: Depletion: It refers to the allocation of the cost or expense that is incurred by the business in…

Q: (a) What are the percentage depletion and the cost depletion allowances?

A: Depletion: It refers to the process of proportionately distributing the cost of the extracting…

Q: On January 1, 2021, a business paid $6.400,000 for land with mineral deposits. Over the following…

A: The process of defining, assessing, and reporting transactions to regulatory authorities, tax…

Q: On April 2, 2015, Montana Mining Co. pays $4,170,260 for an ore deposit containing 1,438,000 tons.…

A: Depletion expense of mineral deposit    $4170260 / 1438000 × 167800     = $486627 Depletion expense…

Q: On February 19 of the current year, Quartzite Co. pays $5,400,000 for land estimated to contain 4…

A: Since there are multiple sub parts in the question, answer will be given for first three sub parts…

Q: Vandeventer Corporation purchased land containing 25.4 million barrels of naphthenic crude oil for…

A: Annual depletion cost: It is the amount by which the cost of natural resource is depleted over an…

Q: During the month of August, a mining company has a gross income of P4,200,000 from the production of…

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: 10. On January 1, 2021, Homestead Designs purchased some equipment for $19,600. The anticipated life…

A: Depreciation per unit under activity method = (Cost - Salvage value)/ Total expected units

Q: Equipment associated with manufacturing small railcars had a first cost of $250,000 with an expected…

A: Business organizations are required to charge the depreciation expense so that the assets are shown…

Q: Leroy Mining Company purchased land containing an estimated 10,000,000 tons of ore for a cost of…

A: Depletion charge per ton :— It is calculated by dividing depletable value by total estimated tons of…

Q: On August 1, 2015, Toy inc. purchosed a new piece of equipment that cost$25000. The estimoted useful…

A: Solution...   Cost of asset = $25,000  Life = 5 years  Method of depreciation = Double declining…

Q: In January 2007, the Status Quo Company was formed. Total assets were $502,000, of which $354,000…

A: Depreciation is reduction in the value of assets due to its use, wear or tear.Accumulated…

Q: On April 1, Year 1, Fossil Energy Company purchased an oil producing well at a cash cost of…

A: The depletion and depreciation are calculated on the basis of the usage of the different assets…

Q: On 1 January 2010. A company purchased equipment for BD 230,000. The new machines have a useful life…

A: These 2 are the most common methods of depreciation:   Straight line depreciation (SLD). This method…