Monty Corp. purchased for $5,977,200 a mine that is estimated to have 49,810,000 tons of ore and no salvage value. In the first year, 12,090,000 tons of ore are extracted. (a1) * Your answer is incorrect. Calculate depletion cost per unit. (Round answer to 2 decimal places, e.g. 0.50.) Depletion cost per unit $ eTextbook and Media 0.22 per ton

Monty Corp. purchased for $5,977,200 a mine that is estimated to have 49,810,000 tons of ore and no salvage value. In the first year, 12,090,000 tons of ore are extracted. (a1) * Your answer is incorrect. Calculate depletion cost per unit. (Round answer to 2 decimal places, e.g. 0.50.) Depletion cost per unit $ eTextbook and Media 0.22 per ton

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Subject: acounting
On April 1, Year 1, Fossil Energy Company purchased an oil producing well at a cash cost of $7,140,000. It is estimated that the oil well contains 660,000 barrels of oil, of which only 560,000 can be profitably extracted. By December 31, Year 1, 28,000 barrels of oil were produced and sold. What is depletion expense for Year 1 on this well? Multiple Choice оо оо $357,000 $476,000 $302,909 $119,000
A company purchased mining property for $4,875,000 (assume no salvage value) containing an estimated 15,000,000 tons of ore. In Year 1, it mined 689,000 tons of ore and in Year 2, it mined 935,000 tons. 1. What is the depletion rate per ton? -------------------> Calculation: 2. What is the depletion expense for Year 1? ----------> Calculation: 3. What is the depletion expense for Year 2? ----------> Calculation: 4. What is the book value at the end of Year 2? Mining property Less: Accumulated depletion Book Value
4 02:59:09 Perez Company acquires an ore mine at a cost of $2,240,000. It incurs additional costs of $627,200 to access the mine, which is estimated to hold 1,600,000 tons of ore. 210,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $320,000. Calculate the depletion expense from the information given. 1. & 2. Prepare the entry to record the cost of the ore mine and year-end adjusting entry. Complete this question by entering your answers in the tabs below. eBook Depletion Expense General Journal Calculate the depletion expense from the information given. Note: Round "Depletion per unit" to 3 decimal places. Cost Salvage Amount subject to depletion Total units of capacity Depletion per unit Units extracted and sold in period Depletion expense Help Save &
8
A coal mine cost $1,002,000. It is estimated to hold 56,000 tons of coal. There is no residual value during the first year of operations 8000 tons are extracted and soul calculate depletion expense for the first year. A) $200,400 B) $143,120 C) $150,300 D) $100,200
Savita
Pharoah Company purchased for $4,543,000 a mine that is estimated to have 45,430,000 tons of ore and no salvage value. In the first year, 14,040,000 tons of ore are extracted. (a1) Calculate depletion cost per unit. (Round answer to 2 decimal places, e.g. 0.50.) Depletion cost per unit $ per ton Save for Later (a2) The parts of this question must be completed in order. This part will be available when you complete the part above.
Domestic
A coal mine cost $1,005,000 and is estimated to hold 52,000 tons of coal. There is no residual value. During the first year of operations, 6,000 tons are extracted and sold. Calculate depletion per unit. (Round your answer to the nearest cent.) OA $19.33 OB. $9.67 OC. $4.83 OD. $14.5 ***
2
Scenario 2: Crotekch Power Sdn. Bhd. installed a diesel-electric unit costing RM50,000 at a remote site because no dependable electric power was available from a public utility five years ago. The company has computed the depreciation by straight-line method with a useful life of 10 years and a zero-salvage value. Annual operation and maintenance expenses are RM16,000 and property taxes and insurance cost another RM3,000 per year. Dependable electric service is now available at an estimated annual cost of RM30,000. The company wishes to know whether it would be more economical to dispose of the diesel-electric unit now, when it can be sold for RM35,000, or to wait five years when the unit would have to be replace anyway (with no Market Value). The company has an effective income tax rate of 50% and tries to limit its capital expenditures to opportunities that will earn at least 15% per year after income tax. What would you recommend?