On July 23 of the current year, Dakota Mining Company pays $7,121,760 for land estimated to contain 9,624,000 tons of recoverable ore. It installs and pays for machinery costing $1,828,560 on July 25. The company removes and sells 494,000 tons of ore during its first five months of operations ending on December 31. Depreciation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore is mined. e) If the machine will be used at another site when extraction is complete, how would we depreciate this machine? Depreciated

On July 23 of the current year, Dakota Mining Company pays $7,121,760 for land estimated to contain 9,624,000 tons of recoverable ore. It installs and pays for machinery costing $1,828,560 on July 25. The company removes and sells 494,000 tons of ore during its first five months of operations ending on December 31. Depreciation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore is mined. e) If the machine will be used at another site when extraction is complete, how would we depreciate this machine? Depreciated

Name: On July 23 of the current year, Dakota Mining Company pays $7,121,760
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Description: On July 23 of the current year, Dakota Mining Company pays $7,121,760 for land estimatedto contain 9,624,000 tons of recoverable ore. It installs and pays for machinery costing$1,828,560 on July 25. The company removes and sells 494,000 tons of ore

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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