Fitzgerald Oil and Gas incurred costs of $8.25 million for the acquisition and development of a natural gas deposit. The company expects to extract 3 million cubic feet of natural gas during a four-year period. Natural gas extracted during years 1 and 2 were 700,000 and 800,000 cubic feet, respectively. What was the depletion for year 1 and year 2?

Q: The Ste. Marie Division of Pacific Media Corporation just started operations. It purchased…

A: A decrease in the value of an asset over time, owing to wear and tear in particular is called…

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: Maggie Company expects to extract 20 million tons of coal from a mine that cost $12 million. If no…

A: The depletion expense is charged on mines that are extracted naturally.

Q: Gimli Miners recently purchased the rights to a diamond mine. It is estimated that there are one…

A: Depletion is the reduction in value of natural resources over the period of time. This is charged as…

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: 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: Bowman Corporation is considering an investment in special-purpose equipment to enable the company…

A: Formula used: Payback Period = Equipment costsNet Income including Depreciation Return on Average…

Q: Required information For the last 10 years, Am-Mex Coal has used the cost depletion factor of $2,500…

A: In terms of accountancy, depletion can be defined as a method of reducing the value of a natural…

Q: Vesco Mineral Resources purchased mineral rights to land in the foothills of the Santa Cristo…

A: Depletion per ton  = (Cost of mineral rights to land - Residual value) / Estimated tons of mineralss…

Q: ed MV of ​$14,000 at the end of an estimated useful life of 14 years. Compute the depreciation…

A: a) SL method as,

Q: The Ste. Marie Division of Pacific Media Corporation just started operations. It purchased…

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: 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: Alberta-based ACME used a depletion factor of $ 2,500 per 100 tonnes to fully recoup the $ 35…

A: As per the study, there is change in the saleable coal figures, now new study shows that the 800000…

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: Choice Mining Company has purchased a tract of mineral land for $4,500,000. It is estimated that…

A: 1. Estimated Depletion Depletion Base Estimated Yield Per Ton 1st and 11th years Each of 2-10…

Q: A company bought land one year prior to start-up for 100,000$. Total capital investment spent at the…

A: Price is the amount that is paid to buy any product or service. In another word, the price is the…

Q: Gomez Corporation purchased land for P 6,000,000. The company expected to extract 1,000,000 tons of…

A: The question is multiple choice question. Required  Choose the Correct Option.

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: Chaparral Sand and Gravel purchased a pit for $900,000 that is expected to yield 6000 tons of gravel…

A: For non renewal natural resources the concept of depliciation is used instead of depriciation.For…

Q: Determine the after-tax cash flows for years 0, 1, 2, and 3.

A: After tax cash flow denotes the cash flow after deduction of taxes and interest. It shows the…

Q: company purchased a tract of land for its natural resources at a cost of $1,500,000. It expects to…

A: Depletion is an expense which represent the fall in value of natural resources or assets.

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: Winett Corporation is considering an investment in special-purpose equipment to enable the company…

A: Annual cash flows = Net Income + Depreciation = 79,500+ 26,500= $106,000 As annual cash flows are…

Q: Milby company incurred the following research and development costs during the current year:…

A: Depreciation for the equipment = 150000 / 5 years = 30000

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: Vandeventer Corporation purchased land containing 25.4 million barrels of naphthenic crude oil for…

A: Annual depletion cost: It is the amount by which the cost of natural resource is depleted over an…

Q: Grey Mining Company has purchased a tract of mineral land for $1,200,000. It is estimated that this…

A: Depletion base=Value of land-Residual value=$1,200,000-$80,000=$1,120,000

Q: The Ste. Marie Division of Pacific Media Corporation just started operations. It purchased…

A: a & b . ROI using historic cost net book value and gross book value  Year Net book Value…

Q: ABC Corporation purchased an island that supposedly has commercially extractable oil. The purchase…

A: Depletion expense is determined on the basis of units of oil extracted. The total cost of island is…

Q: Bowman Corporation is considering an investment in special-purpose equipment to enable the company…

A: Pay back Period  = Cash Outflow / Annual Cashflow  Return on Average Investment  = Net Income /…

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: 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: A diesel-powered generator with a cost of $60,000 is expected to have a useful operating life of…

A: Introduction Deprecation may be defined as that type of operating expenses which occurs due to…

Q: Gimli Miners recently purchased the rights to a diamond mine. It is estimated that there are one…

A: Depletion arte per tons = (Cost of rights - Residual value) / Estimated tons of minerals =…

Q: It was projected that a coal mine purchased 3 years ago for $7 million would hold 4,000,000 tons of…

A: The depletion expense on the coal mine is determined based on the coal extracted. The coal extracted…

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: 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: The Platinum Touch Mining Company paid $4,000,000 for a parcel of land, including the mining rights.…

A: Land cost =4000000 Amount for preparation =564700 Residual value =800000 Total net value…

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: The Ste. Marie Division of Pacific Media Corporation just started operations. It purchased…

A: 1. Formula for Residual Income  Net Book Value = Net Operating Income - ( Book Value of Assets -…

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: 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: 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: An ice machine was purchased for Php400,000 with a residual value of Php75,000 and a life of 2,500…

A: Depreciation is an accounting method where the entities assets over the period of time had wear and…

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.