A company purchased a mining property containing 15,000,000 tons of ore for $4,875,000.  In year 1 it mined 789,000 tons of ore and in year 2 it mined and sold 1,235,000 tons.  Calculate the depletion expense for year 1 and year 2. Year 1:   Year 2:

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: Perez Company acquires an ore mine at a cost of $1,400,000. It incurs additional costs of $400,000…

A: Req-1   Cost ($1400000 + $400000) $18,00,000 Salvage $2,00,000 Amount subjected to depletion…

Q: Early in the current year, Tokay Co. purchased the Silverton Mine at a cost of $15,500,000. The mine…

A: Computation for the book value of the mine at year end is as follows:First we need to calculate the…

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: Coal Miner Co. acquired coal rights for $100,000,000. It is estimated that there are 2,500,000 tons…

A: What Is Depreciation Depreciation is an accounting method of allocating the cost of a tangible…

Q: Copy equipment was acquired at the beginning of the year at a cost of $38,660 that has an estimated…

A: Under the Units of Output method of Depreciation, the depreciation is charged on the basis of actual…

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: Layton Company purchased tool sharpening equipment on October 1 for $108,000. The equipment was…

A: a. Calculate the amount of depreciation for four ending December 31 by using the straight-line…

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: Montana Mining Company pays $3,478,510 for an ore deposit containing 1,560,000 tons. The company…

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

Q: A certain mining company has acquired a coal mine for a cost of $4,500,000. No other costs are…

A: Step 1 Depletion is the expense charged over the extraction of natural resources output in a…

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: 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: Lawn & Order, Inc., purchased a truck on January 1, Year 1, at a cost of $109,000. The truck has an…

A: Purchase cost= $109000 Useful life= 5 yrs Salvage value=$21000 Depreciation under Straight line…

Q: A company purchased a weaving machine for $206,520. The machine has a useful life of 8 years and a…

A: Under Units of Production Method of Depreciation, Depreciation is recognized on the basis of Units…

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: On the first day of the fiscal year, Alpha Corporation purchased a machine with a cost of s65,000.…

A: Straight line method In straight line method, value of a fixed asset is decreased gradually over its…

Q: A plant asset was purchased on January 1 for $75,000 with an estimated salvage value of $15,000 at…

A: Depreciation as per straight line method  = (Cost - residual value) /usefullife

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: Whispering Winds Corp. purchased for $12,385,000 a mine that is estimated to have 49,540,000 tons of…

A: Firstly we shall calculate the depletion expense per ton using the following formula - Depletion…

Q: 2. Pedroni Oil Company purchased packaging equipment on January 8 for $72,000. The equipment was…

A: What is meant by depreciation? It is the reduction in the value of a tangible asset over a period of…

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: 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: On June 1, Aggie Company purchased equipment for $ 50,000. The equipment has a 7yr life with a…

A: Formulas:

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: Perez Company acquires an ore mine at a cost of $2,660,000. It incurs additional costs of $744,800…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: A company acquired equipment that cost $12,000 by paying $1,000 cash and obtaining a loan of…

A: Annual Depreciation = Total Cost of Asset - Salvage ValueUseful life

Q: An item of equipment acquired on January 1, at a cost of RM100,000, has an estimated use of 50,000…

A: Depreciation: It refers to a gradual decrease in the fixed asset’s value because of obsolescence,…

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: 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: depletion expense

A: Depletion expense is the cost of extracting natural resources. It is written off against revenue.

Q: Copy equipment was acquired at the beginning of the year at a cost of $73,020 that has an estimated…

A: Formula: Depreciation rate (units of output method) = Depreciable cost / Estimated output where,…

Q: A company purchased a weaving machine for $190,000. The machine has a useful life of 8 years and a…

A: The depreciation is a decline in the value of tangible assets over their useful life. it is a…

Q: Waylander Coatings Company purchased waterproofing equipment on January 6 for $320,000. The…

A: Determine the amount of depreciation for three years ending.

Q: York Instruments completed the following transactions and events involving its machinery. Year 1…

A: Calculation of Depreciation year wise is as follows: Resultant table:

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

A: Depletion is an accounting concept similar to depreciation, but its uses are in industries that…

Q: A company used straight-line depreciation for equipment that cost $12,000, had a salvage value of…

A: Solution - Depreciation= (value of assets - residual value)/No. Of years of useful life (As per…

Q: Montana Mining Co. pays $3,926,550 for an ore deposit containing 1,572,000 tons. The company…

A: Depletion expense of Ore mine = Cost of Ore mine x Tons of Ore mines and sold / Total Ore deposit…

Q: Montana Mining Company pays $4,771,370 for an ore deposit containing 1,502,000 tons. The company…

A: Depletion and Depreciation Method For Calculating the Depletion method in ore extraction the total…

Q: A company purchased mineral assets holding approximately 240,000 tons of ore for $960,000. The…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: In connection with your audit of the ABC Mall Corporation for the year ended December 31, 20X1, you…

A: We are required by the question to calculate the cost of inventory. We have been given details of…

Q: Dow Deep Mining Co acquired mineral rights for $56,000,000. The mineral deposit is estimated at…

A: Formula: Depletion rate per ton = Total mineral rights acquired cost / Estimated Tons

Q: On the first day of the fiscal year, Alpha Corporation purchased a machine with a cost of $65,000.…

A: Depreciation It  is a systematic allocation of  the cost of an asset which  is used in a business.…

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: Depletion expense to be recorded in Income statement. Depletion is…

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: 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: Acme Energy, Inc. purchased land containing 28.1 million tons of lignite for $12.926.000. It cost…

A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear. There are…

Q: In connection with your audit of the ABC Mall Corporation for the year ended December 31, 20X1, you…

A: The question is based on the concept of Business Accounting.