At the beginning of 2020, Metlock Company acquired a mine for $1,842,600. Of this amount, $113,000 was ascribed to the land value and the remaining portion to the minerals in the mine. Surveys conducted by geologists have indicated that approximately 11,570,000 units of ore appear to be in the mine. Metlock incurred $192,100 of development costs associated with this mine prior to any extraction of minerals. It also determined that the fair value of its obligation to prepare the land for an alternative use when all of the mineral has been removed was $45,200. During 2020, 2,702,000 units of ore were extracted and 2,293,000 of these units were sold. Compute the following. (a) The total amount of depletion for 2020. (Round per unit answer to 2 decimal places, e.g. 0.45 for computational purpose and final answer to 0 decimal places, eg. 45,892.) Depletion for 2020 %24

At the beginning of 2020, Metlock Company acquired a mine for $1,842,600. Of this amount, $113,000 was ascribed to the land value and the remaining portion to the minerals in the mine. Surveys conducted by geologists have indicated that approximately 11,570,000 units of ore appear to be in the mine. Metlock incurred $192,100 of development costs associated with this mine prior to any extraction of minerals. It also determined that the fair value of its obligation to prepare the land for an alternative use when all of the mineral has been removed was $45,200. During 2020, 2,702,000 units of ore were extracted and 2,293,000 of these units were sold. Compute the following. (a) The total amount of depletion for 2020. (Round per unit answer to 2 decimal places, e.g. 0.45 for computational purpose and final answer to 0 decimal places, eg. 45,892.) Depletion for 2020 %24

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 4E: Determination of Acquisition Cost In January 2019, Cordova Company entered into a contract to...

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