During 2019, a company purchased a mine at a cost of $4,251,000. The company spent an additional $690,000 getting the mine ready for its intended use. It is estimated that 390,000 tons of mineral can be removed from the mine and the residual value of the mine will be $690,000. During 2019, 54,000 tons of mineral were removed from the mine and 44,000 tons were sold. Which of the following statements is correct with respect to the accounting for the mine? (Do not round your intermediate calculations.)   Multiple Choice A - The 2019 net income decreased $588,600 as a result of the mining during the year. B - The 2019 cost of goods sold was $479,600. C - The inventory of minerals was $588,600 at December 31, 2019. D - The book value of the mine decreased $479,600 during 2019.

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A: Given information: Purchase price = ₱4,000,000 Total estimated tons = 160,000 Salvage value =…

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A: Depletion rate per ton= (Initial purchase amount - salvage value] / capacity of extraction of…

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Q: in 2020, ABC Company paid P4,000,000 to purchase land containing a total estimated 160,000 tons of…

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A: DepletionDepletion is an accrual accounting technique used to allocate the cost of extracting…

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A: Depletion expense is the exploration cost and the development cost charged to the income statement.…

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A: Given that: Purchase price of Mine = $48,00,000 Total tons = 20,00,000 Residual value = $280,000…

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A: Depletion is an accounting concept used by the timber, oil and gas and mining industries to account…

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A: Depreciable amount = $89,000 – $5,000 = $84,000 Sum of the year digits: 1+2+3+4+5+6+7 = 28 2020 =…

Q: Straight-line  (b) Units-of-output  (c) Working hours

A:

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

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A: Decommissioning liabilities- It means any costs, charges, expenses, liabilities and obligations…

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A: Natural resources are gifts of nature without which survival is impossible. In order to fulfill the…

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A: The questions are multiple choice questions Required  Choose the Correct Option.

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A: Formula: Depletion per Ton = ( Cost of land - salvage value ) / Estimated tons

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A: The depletion rate indicates the allocation of cost extractions of deposits minerals.

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A:

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A: The process by which financial transactions of the business are recorded and communicated with the…

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A: "Hey, since multiple sub parts are posted, we will answer the first three questions alone. If you…

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A: Depletion expense per ton = (Cost - Residual value)/Total estimated tons

Q: how much should the company include as depletion in its cost of goods sold?

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A: The companies that are related to exploration and development of natural gas and crude oil, use…