Perez Company acquires an ore mine at a cost of $1,400,000. It incurs additional costs of $400,000 to access the mine, which is estimated to hold 1,000,000 tons of ore. The estimated value of the land after the ore is removed is $200,000. 1. Prepare the entry(ies) to record the cost of the ore mine. 2. Prepare the year-end adjusting entry if 180,000 tons of ore are mined and sold the first year.

Q: Salter Mining Company purchased the Northern Tier Mine for $21 million cash. The mine wasestimated…

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

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: Montello Inc. purchases a delivery truck for $14,000. The truck has a salvage value of $2,000 and is…

A: 1. DEPRECIABLE VALUE :  = COST - SALVAGE VALUE  = $14,000 - $2,000 = $12,000   2. DEPRECIATION…

Q: Wickland Company installs a manufacturing machine in its production facility at the beginning of the…

A: Calculation of the depreciation rate is shown below:

Q: Barefoot Industrial acquired a new delivery truck at the beginning of its current fiscal year. The…

A: DEPRECIATION EXPENSE Depreciation means gradual decrease in the value of an asset due to normal wear…

Q: Apex Fitness Club uses straight-line depreciation for a machine costing $20,050, with an estimated…

A: Depreciation expense :— It is the allocation of depreciable cost of asset over the estimated useful…

Q: Equipment was purchased for $156,500. Freight charges amounted to $3,500 and there was a cost of…

A: To calculate the depreciation expense using the straight-line method, we first need to determine the…

Q: Angels Inc. purchases a piece of equipment for $65,000. The equipment has an expected useful life of…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: Solare Company acquired mineral rights for $285,300,000. The diamond deposit is estimated at…

A: DEPLETION   Depletion Method is Specially suited to mines, oil wells, quarries, Sandpits &…

Q: Martin Company purchases a machine at the beginning of the year at a cost of $63,000. The machine is…

A: Book value of the machine at the end of the estimated useful life is its salvage value.

Q: Montello Inc. purchases a delivery truck for $12,000. The truck has a salvage value of $2,000 and is…

A: The unit of production method is a method of calculating the depreciation of the value of an asset…

Q: On August 3, Cinco Construction purchased special-purpose equipment at a cost of $9,300,000. The…

A: Depreciation refers to the expense which is incurred for reducing the value of assets due to…

Q: Weber Company purchased a mining site for $585,330 on July 1. The company expects to mine ore for…

A: Depletion per tons = (Purchased Cost of mining site - estimated residual value) / anticipated tons =…

Q: Wildhorse Company purchases equipment on January 1, Year 1, at a cost of $576,000. The asset is…

A: Depreciation expense is the non-cash expense charged on the non-current assets. It is reported on…

Q: The company purchased the equipment on October 1, 20X1 for $100,000, and estimated that the…

A: Depreciation accounting

Q: At the beginning of the fiscal year, Remington purchases a mold for manufacturing powdered metal…

A: Depreciation under the Modified Accelerated Cost Recovery System seems to be a federal income tax…

Q: The Weber Company purchased a mining site for $510,498 on July 1. The company expects to mine ore…

A: Calculation of Depletion rate per tonne Depletion rate per tonne = Purchase price of mining site/…

Q: Holman Company owns equipment with an original cost of $99,080 and an estimated salvage value of…

A: The cost of a long-term asset is uniformly distributed as an expense over the course of its…

Q: Weber Company purchased a mining site for $690,727 on July 1. The company expects to mine ore for…

A: b.$44,598.37

Q: Earth's Treasures Mining Co. acquired mineral rights for $37,500,000. The mineral deposit is…

A: The objective of the question is to calculate the depletion rate, the depletion expense for the…

Q: NewTech purchases computer equipment for $261,000 to use in operating activities for the next four…

A: Solution: Choose Numerator / Choose Denominator = Annual Depreciation Cost minus salvage /…

Q: Intra-Spect Mining Co. acquired mineral rights for $52,000,000. The mineral deposit is estimated at…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: Montana Mining Company pays $3,234,950 for an ore deposit containing 1,553,000 tons. The company…

A: It's the first step in the double- entry clerk system and involves  taking down the  financial goods…

Q: A manufacturing firm purchased used equipment for $135,000. The original owners estimated that the…

A: Lets understand the basics. When entity have the amount of consideration paid for the purchase of…

Q: Montana Mining Company pays $4,834,810 for an ore deposit containing 1,554,000 tons. The company…

A: Depreciation is the reduction in the value of tangible asset due to its use or wear and tear.…

Q: The Weber Company purchased a mining site for $534,246 on July 1. The company expects to mine ore…

A: Wasting assets: These are the assets which will have only a limited useful life and the value of…

Q: ABC, Inc acquired a machine on January 1 at a cost of $250,000. ABC estimates that the machine has a…

A: Double declining balance method is the method of depreciation under which depreciation is charged at…

Q: The company purchased the equipment on October 1, 20X1 for $100,000, and estimated that the…

A: Depreciation refers to the fall in the historical value of an asset each year. Depreciable amount is…

Q: Oki Company pays $293,750 for equipment expected to last four years and have a $30,000 salvage…

A: Capital and Revenue Expenditure - Capital expenditure is an expense which increase the earning…

Q: On August 3, Franko Construction purchased special-purpose equipment at a cost of $4,700,000. The…

A: Depreciation is the term describing the cost incurred to lower an asset's value because of things…

Q: On January 1, 2022, Jackson Company purchased a truck, a machine, and a small office building for…

A: A double declining method is a form of an accelerated depreciation method in which the depreciation…

Q: Mohr Company purchases a machine at the beginning of the year at a cost of $41,000. The machine is…

A: Accounting defines depreciation as the systematic reduction of a fixed asset's reported cost until…

Q: Thunderbird Manufacturing purchases a new stamping machine for $50,000. Its useful life is estimated…

A: Formula: Units-of-Production = ( Asset cost - Salvage value ) / Estimated production

Q: Use the following information for the Exercises below. (Algo) [The following information applies to…

A: Depreciation Expense - Depreciation is an expense incurred on the fixed assets of the company.…

Q: If the company sells the machine for $2,400 on September 30, it first records a depreciation expense…

A: Given information is: Original Cost of Machine = $20000 Accumulated depreciation in the beginning =…

Q: Equipment was purchased for $60,000. Freight charges amounted to $2,800 and there was a cost of…

A: A tangible asset's cost is systematically spread out over the course of its anticipated useful life,…

Q: Blue Company purchases equipment on January 1, Year 1, at a cost of $600,000. The asset is expected…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/12 years) x 2 =…