Weber Company purchased a mining site for $690,727 on July 1. The company expects to mine ore for the next 10 years and anticipates that a total of 86,719 tons will be recovered. The estimated residual value of the property is $40,504. During the first year, the company extracted 5,948 tons of ore. The depletion expense is a.$65,022.30 b.$44,598.37 c.$47,376.52 d.$40,504.00

Q: Sergei Company purchases land for $4,000,000 from which it expects to extract 2,000,000 tons of…

A: Given that, Cost of land = $4,000,000  Estimated residual value = $400,000  Expected extract tons of…

Q: Copy equipment was acquired at the beginning of the year at a cost of $37,120 that has an estimated…

A: Depreciation is the allocation of cost of asset over the useful life of the asset. It can be charged…

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: Golden Sales has bought $135,000 in fixed assets on January 1st associated with sales equipment. The…

A: Formula: Straight line method: ( Cost of Asset - salvage value ) / useful life  Depreciable cost =…

Q: Mareos Company purchased for $3,800,000 a mine estimated to contain 3,000,000 tons of ore. When the…

A: Depreciation per ton (Units of production method) =(cost of Asset - salvage value )  / Estimated…

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: Sergei Company purchases land for $4,000,000 from which it expects to extract 2,000,000 tons of…

A: Unit depletion rate = (Cost of the coal mine - residual value) / Estimated tons of coal

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 corlcrete and rock crusher for demolition work has been purchased for $60,000, and it has an…

A: Depreciation is the allocation of cost of asset over the useful life of asset. There are many…

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: 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: 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: In January 2018, HUKAY Mining Corporation purchased a mineral mine for P7,200,000 with removable ore…

A: Depletion can be defined as the method that is used to determine and allocate the cost of extracting…

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: Galali mining company on April 30, paid BD 1,400,000 for a an ore with a capacity 1,400,000 tonnes…

A: The Numerical has covered the concept of Depletion Expenses. Depletion expense charge on the use of…

Q: A drilling company purchased a mining site for $450,000 on July 1, 2016. The company expects to mine…

A: Depletion per ton = (Purchase cost of mine - residual value) / Expected tons of mine ore = ($450,000…

Q: An ice machine was purchased for $400,000 with a residual value of $75,000 and a life of 2,500…

A: Assets: Assets are the resources of an organization used for the purpose of business operations.…

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: Salter Mining Company purchased the Northern Tier Mine for $75 million cash. The mine was estimated…

A: Depletion is an accounting concept which is similar to depreciation but it is mostly used in…

Q: Copy equipment was acquired at the beginning of the year at a cost of $60,040 that has an estimated…

A: A) Depreciable cost = Cost of Equipment - Residual value =$60040 - $5500 =$54540   Depreciable cost…

Q: Underwood’s Miners recently purchased the rights to a diamond mine. It is estimated that there are…

A: Depletion expense = Cost * Extracted for the year / Total Extraction from the mine

Q: Copy equipment was acquired at the beginning of the year at a cost of $62,460 that has an estimated…

A: Units of activity method: Under units-of-activity method, depreciation is computed based on the…

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: The Weber Company purchased a mining site for $1,750,000 on July 1. The company expects to mine ore…

A: Depletion is a charge or expense on a fixed asset. It is similar to depreciation expense. The only…

Q: On January 1, 20x1, DEF Mining Corp. purchased an ore mine at P30,000,000. The cost of exploration…

A: Cost of mine will also include development cost .  Depletion Expense = Cost - Salvage value…

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: The Weber Company purchased a mining site for $580,128 on July 1. The company expects to mine ore…

A: Given, Cost of machone = $580,128 Total tons = 85,978  Depletion expense per ton = (Cost - Salvage…

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: Copy equipment was acquired at the beginning of the year at a cost of $72,000 that has an estimated…

A: The depreciation as per the unit-of-output method is calculated using the below given formula:…

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

A: Depreciation is the amount of reduction in the value of an asset due to normal wear & tear,…

Q: 000 tons. In 2018, the company mined 140,000 tons and sold 130,000 tons. The company uses a FIFO…

A: Depletion Expense: The cost allocation method used for natural resources like mining deposits,…

Q: Copy equipment was acquired at the beginning of the year at a cost of $41,560 that has an estimated…

A: Depreciation (Units of output method) =[ ( cost of Asset - salvage value ) x Actual output]  /…

Q: Dexter Industries purchased packaging equipment on January 8 for $511,400. The equipment was…

A: Formula: Straight line method = ( Asset cost - Salvage value ) / Useful life years

Q: Golden Sales has bought $135,000 in fixed assets on January 1st associated with sales equipment. The…

A: Assets: Assets are the resources of an organization used for the purpose of business operations.…

Q: Golden Sales has bought $135,000 in fixed assets on January 1st associated with sales equipment. The…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/4 years) x 2 = 50%

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 July 23 of the current year, Dakota Mining Co. pays $4,715,000 for land estimated to contain…

A: Hi student Since there are multiple sub parts, we will answer only first three sub parts.

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: At the beginning of the current year, Handsome Company purchased a mineral mine for P36,000,000 with…

A: Total cost of  mineral mine = purchased costs + development costs  = P36,000,000 + P10,800,000  =…

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: Sergei Company purchases land for $4,000,000 from which it expects to extract 2,000,000 tons of…

A: Introduction: Depletion: Decreasing value of assets over its useful life period called as Depletion.…

Q: Depreciable mining equipment costing $100,000 is expected to have a useful life of 120,000 units of…

A: Units of Production method Depreciation  =  Cost Of Asst - Salvage valueEstimated total production…

Q: ABC Company has an equipment costing P 700,000 with an estimated residual value of P 70,000 and an…

A: Costs which are incurred to improve the quality of the asset's output shall be capitalized and form…

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: cheba construction company acquired a new crane for 360,000$ at the beginning of year 1. the crane…

A: Under straight line method, depreciation remains same every year. Depreciation under straight line…