What is LCM's cost depletion for years 1, 2, and 3?
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: 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: Perez Company acquires an ore mine at a cost of $1,680,000. It incurs additional costs of $470,400…
A: The cost of ore mine will include cost of purchase plus cost incurred to access the mine.
Q: Miller Mining acquired rights to a tract of land with the intent of extracting from the land a…
A: Depletion: It can be defined as a reduction or fall in the value of natural resources being used in…
Q: Colorado Mining paid $750,000 to acquire a mine with 50,000 tons of coal reserves. The financial…
A: Depletion Cost Is a Method Of Allocating The Cost To Natural Resources Extracted. Depletion Charge…
Q: A new year had begun, JK Company, a mining institute, purchased a mineral mine for P56,000,000 with…
A: Depletion refers to the reduction in value. It is the non-cash expense of the business recorded by…
Q: A&Z incurred $352,500 of capitalized costs to develop a uranium mine. The corporation's geologists…
A: DEPLETION Depletion is a method of Depreciation which is Suited for Mining, oil wells, quarries,…
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: In January year 1, the Under Mine Corporation purchased a mineral mine for $3,400,000 with removable…
A: Solution:Cost of mineral mine = Purchase price + Development costDepletion cost per unit = (Cost of…
Q: Colorado Mining paid $495,000 to acquire a mine with 45,000 tons of coal reserves. The following…
A: Depletion charge per unit is calculated by deducting the residual value from the cost of the asset…
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: Perez Company acquires an ore mine at a cost of $3,360,000. It incurs additional costs of $940,800…
A: DEPLETIONThis Method is Specially Suited to Mines, Oil Wells, Quarries, Sandpits and Similar Assets…
Q: Perez Company acquires an ore mine at a cost of $3,780,000. It incurs additional costs of $1,058,400…
A: The objective of the question is to calculate the depletion expense for the first year of operation…
Q: Perez Company acquires an ore mine at a cost of $3,640,000. It incurs additional costs of $1,019,200…
A: Depletion is charged to natural resources as depreciation is charged to fixed assets.
Q: Perez Company acquires an ore mine at a cost of $2,940,000. It incurs additional costs of $823,200…
A: Depletion expense : Depletion expense is the cost that is charged against the profits for the use of…
Q: Last Chance Mine (LCM) purchased a coal deposit for $1,654,350. It estimated it would extract 13,450…
A: Cost and percentage depletion are to be calculated by multiplying the tax year's gross income that…
Q: Castle Company purchased land containing an estimated 2.5 million tons of ore for a cost of…
A: Depletion charge per ton = (Cost of land containing ore - Cost of land without ore) / Estimated tons…
Q: A&Z incurred $352,500 of capitalized costs to develop a uranium mine. The corporation's geologists…
A: Natural resources are the gift of nature. These resources are land, water, coal, and minerals. Some…
Q: Nevada Gold Company (LLC) purchased a gold deposit for $1,500,000. It estimated it would extract…
A: The gold depletion as per statutory requirement is lower of 15% of gross income or net income. It…
Q: Salter Mining Company purchased the Northern Tier Mine for $21 million cash. The mine was estimated…
A: DEPLETION EXPENSE This Method is Specially Suited to mines, Oil wells, Quarries, Sandpits and…
Q: Perez Company acquires an ore mine at a cost of $2,380,000. It incurs additional costs of $666,400…
A: Depletion is just like depreciation but it is charged on natural resources such as mines etc. It is…
Q: On April 17 of the current year, a mining company purchased the rights to a mine. The purchase price…
A: Requirement:-1 Calculation of the depletion for the current year as follows:- Depletion per ton =…
Q: Weber Company purchased a mining site for $617,434 on July 1. The company expects to mine ore for…
A: Depreciation or depletion is a decrease in the value of an asset due to various reasons like wear…
Q: Donahue Oil has an account titled Oil and Gas Properties. Donahue paid $6,700,000 for oil reserves…
A: Depletion means the fall in value of reserve when some reserves has been extracted from mines.…
Q: The Weber Company purchased a mining site for $573,259 on July 1. The company expects to mine ore…
A: For the use of natural resources, depletion expenses is charged (against profits). It is most common…
Q: Salter Mining Company purchased the Northern Tier Mine for $50 million cash. The mine was estimated…
A: DEPLETION PER ORE = (COST - RESIDUAL VALUE) / NUMBER OF TOTAL TONS OF ORE = ($50 MILLION - $1.5…
Q: Prepare the entry to record the cost of the ore mine and year-end adjusting entry.
A: S.No Particulars Amount ($) a Cost 3763200 b Salvage Value 420000 c Amount Subject to…
Q: Colorado Mining paid $686,000 to acquire a mine with 49,000 tons of coal reserves. The financial…
A: Total tons used in year 1 and 2=25,725+22,050=47,775
Q: Last Chance Mine (LCM) purchased a coal deposit for $1,654,350. It estimated it would extract 13,450…
A: The fixed assets like buildings and machinery are depreciated while the natural resources like…
Q: The Weber Company purchased a mining site for $674,927 on July 1. The company expects to mine ore…
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…
Q: 707'7s
A: Depletion is like depreciation of an asset. Here the depletion…
Q: Weber Company purchased a mining site for $525,247 on July 1. The company expects to mine ore for…
A: Given, Cost of mining site = $525,247 Residual value = $49,377 Total tons = 85,242 tons Tons…
Q: Colorado Mining paid $564.000 to acquire a mine with 47,000 tons of coal reserves. The financial…
A: Depletion is reduction in the value of natural assets due to its use, wear or tear.As per dual…
Q: Kelly Company acquired an iron mine for $2,349,000. Kelly paid a $1,000 filing fee with the county…
A: Gross Profit = Sales - Cost of Goods Sold
Last Chance Mine (LCM) purchased a coal deposit for $750,000. It estimated it would extract 12,000 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1 million, $3 million, and $2 million for years 1 through 3, respectively. During years 1–3, LCM reported net income (loss) from the coal deposit activity in the amount of ($20,000), $500,000, and $450,000, respectively. In years 1–3, LCM extracted 13,000 tons of coal as follows: (Leave no answer blank. Enter zero if applicable. Enter your answers in dollars and not in millions of dollars.)
(1) Tons of Coal | (2) Basis | Depletion (2)/(1) Rate | Tons Extracted per Year | ||
---|---|---|---|---|---|
Year 1 | Year 2 | Year 3 | |||
12,000 | $ 750,000 | $ 62.50 | 2,000 | 7,200 | 3,800 |
What is LCM's cost depletion for years 1, 2, and 3?
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- Last Chance Mine (LCM) purchased a coal deposit for $2,282,400. It estimated it would extract 15,850 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1.21 million, $51 million, and $4.3 million for years 1 through 3, respectively. During years 1–3, LCM reported net income (loss) from the coal deposit activity in the amount of ($16,500), $730,000, and $527,500, respectively. In years 1–3, LCM extracted 16,850 tons of coal as follows: (Leave no answer blank. Enter zero if applicable. Enter your answers in dollars and not in millions of dollars.) (1) Tons of Coal Year 1 (2) Basis Depletion (2)/(1) Tons Extracted per Rate Year 3 Year Year 2 15,850 $2,282,400 $144.00 4,150 7,300 5,400 c. Using the cost and percentage depletion computations from parts (a) and (b), what is LCM's actual depletion expense for each year?Last Chance Mine (LCM) purchased a coal deposit for $1,654,350. It estimated it would extract 13,450 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1.35 million, $6.25 million, and $5.2 million for years 1 through 3, respectively. During years 1–3, LCM reported net income (loss) from the coal deposit activity in the amount of ($16,400), $705,000, and $577,500, respectively. In years 1–3, LCM extracted 14,450 tons of coal as follows: (1) Tons of Coal (2) Basis Depletion (2)/(1) Rate Tons Extracted per Year Year 1 Year 2 Year 3 13,450 $1,654,350 $123.00 2,550 7,450 4,450 c. Using the cost and percentage depletion computations from parts (a) and (b), what is LCM's actual depletion expense for each year?Last Chance Mine (LCM) purchased a coal deposit for $1,654,350. It estimated it would extract 13,450 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1.35 million, $6.25 million, and $5.2 million for years 1 through 3, respectively. During years 1–3, LCM reported net income (loss) from the coal deposit activity in the amount of ($16,400), $705,000, and $577,500, respectively. In years 1–3, LCM extracted 14,450 tons of coal as follows: (1) Tons of Coal (2) Basis Depletion (2)/(1) Rate Tons Extracted per Year Year 1 Year 2 Year 3 13,450 $1,654,350 $123.00 2,550 7,450 4,450 b. What is LCM's percentage depletion for each year (the applicable percentage for coal is 10 percent)?
- Nevada Gold Company (LLC) purchased a gold deposit for $1,500,000. It estimated it would extract 500,000 ounces of gold from the deposit. The company mined the gold and sold it, reporting gross receipts of $1.8 million, $2.5 million, and $2 million for Years 1 through 3, respectively. During Years 1 through 3, Nevada Gold reported net income (loss) from the gold deposit activity in the amount of ($100,000), $400,000, and $100,000, respectively. In Years 1 through 3, the company actually extracted 300,000 ounces of gold as follows: Ounces of Gold extracted per year Year 1 Year 2 Year 3 50,000 150,000 100,000 What is Nevada Gold's depletion deduction for Year 2 if the applicable percentage depletion for gold is 15 percent? Question 8 options: $450,000. $400,000. $375,000. $200,000.In January year 1, the Under Mine Corporation purchased a mineral mine for $3,400,000 with removable ore estimated by geological surveys at 4,000,000 tons. The property has an estimated value of $200,000 after the ore has been extracted. The company incurred $800,000 of development costs preparing the mine for production. During year 1,400,000 tons were removed and 375,000 tons were sold. What is the amount of depletion that Under Mine should record for year 1? ○ $420,000 $375,000 ○ $400,000 ○ $393,750Godo
- Salter Mining Company purchased the Northern Tier Mine for $21 million cash. The mine was estimated to contain 2.5 million tons of ore and to have a residual value of $1 million. During the first year of mining operations at the Northern Tier Mine, 50,000 tons of ore were mined, of which 40,000 tons were sold. a. Prepare a journal entry to record depletion during the year. b. Show how the Northern Tier Mine, and its accumulated depletion, would appear in Salter Mining Company's balance sheet after the first year of operations. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Show how the Northern Tier Mine, and its accumulated depletion, would appear in Salter Mining Company's balance sheet after the first year of operations. (Amounts to be deducted should be indicated by a minus sign) Property, plant, & equipment Accumulated depletion Mining property: Northern Tier Mine Salter Mining Company Balance…Required information [The following information applies to the questions displayed below.] Last Chance Mine (LCM) purchased a coal deposit for $750,000. It estimated it would extract 12.000 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1 million, $3 million, and $2 million for years 1 through 3, respectively. During years 1-3, LCM reported net income (loss) from the coal deposit activity in the amount of ($20,000). $500,000, and $450,000, respectively. In years 1-3, LCM actually extracted 13,000 tons of coal as follows: (Leave no answer blank. Enter zero if applicable. Enter your answers in dollars and not in millions of dollars.) (3) Tons of Coal 12,000 Year 1 2 3 Depletion (2) (2)/(1) Basis Rate $750,000 $62.50 Tons Extracted per Year Year 1 Year 21 Year 3 2,000 7,200 3,800 b. What is LCM's percentage depletion for each year (the applicable percentage for coal is 10 percent)? Percentage DepletionColorado Mining paid $564.000 to acquire a mine with 47,000 tons of coal reserves. The financial statements model shown on the last tab reflects Colorado Mining's financial condition just prior to purchasing the coal reserves. The company extracted 24,675 tons of coal in year Land 21150 tons in year 2. Required a Compute the depletion charge per unit b-1. Compute the depletion expense for years 1 and 2 in a financial statements. b-2. Record the acquisition of the coalreserves and the depletion expense for years Fand 2 in a financial statements model. Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Compute the depletion charge per unit. Deple charge per unit per ton Reg BTX
- Mertz Company purchased land containing an estimated 5 million tons of ore for a cost of $8,800,000. The land without the ore is estimated to be worth $500,000. During its first year of operation, the company mined and sold 750,000 tons of ore. Compute the depletion charge per ton. (Round to two decimal places.) Compute the depletion expense that Mertz should record for the year.Required information [The following information applies to the questions displayed below.] Last Chance Mine (LCM) purchased a coal deposit for $1,667,600. It estimated it would extract 18,950 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1.32 million, $5 million, and $4.1 million for years 1 through 3, respectively. During years 1-3, LCM reported net income (loss) from the coal deposit activity in the amount of ($17,500), $702,500, and $695,000, respectively. In years 1-3, LCM extracted 19,950 tons of coal as follows: (1) Tons of Coal 18,950 Depletion (2) Basis (2)+(1) Rate $1,667,600 $88.00 Year 3 Year 1 4,800 6,000 Note: Leave no answer blank. Enter zero if applicable. Enter your answers in dollars and not in millions of dollars. Tons Extracted per Year Year 2 9,150 b. What is LCM's percentage depletion for each year (the applicable percentage for coal is 10 percent)? Year 1 Year 2 Year 3 Percentage DepletionSalter Mining Company purchased the Northern Tier Mine for $21 million cash. The mine wasestimated to contain 2.5 million tons of ore and to have a residual value of $1 million.During the first year of mining operations at the Northern Tier Mine, 50,000 tons of ore weremined, of which 40,000 tons were sold.a. Prepare a journal entry to record depletion during the year.b. Show how the Northern Tier Mine, and its accumulated depletion, would appear in SalterMining Company’s balance sheet after the first year of operations. c. Will the entire amount of depletion computed in part a be deducted from revenue in the deter-mination of income for the year? Explain.