Mack Company acquired property for $20,000,000 containing platinum ore mine on January 1, 2019. Mack estimated that the mine would produce 500,000 tons of ore and once mining is completed, the property could be sold for $200,000. During 2019, 2020, and 2021, Mack recovered 25,000, 50,000, and 125,000 tons of ore, respectively. As a result, the mine should appear on Mack's balance sheet at December 31, 2021 at what amount (net of depletion)?
Mack Company acquired property for $20,000,000 containing platinum ore mine on January 1, 2019. Mack estimated that the mine would produce 500,000 tons of ore and once mining is completed, the property could be sold for $200,000. During 2019, 2020, and 2021, Mack recovered 25,000, 50,000, and 125,000 tons of ore, respectively. As a result, the mine should appear on Mack's balance sheet at December 31, 2021 at what amount (net of depletion)?
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 29CE
Related questions
Question
Mack Company acquired property for $20,000,000 containing platinum ore mine on January 1, 2019. Mack estimated that the mine would produce 500,000 tons of ore and once mining is completed, the property could be sold for $200,000. During 2019, 2020, and 2021, Mack recovered 25,000, 50,000, and 125,000 tons of ore, respectively. As a result, the mine should appear on Mack's
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning