Perez Company acquires an ore mine at a cost of $3,640,000. It incurs additional costs of $1,019,200 to access the mine, which is estimated to hold 2,600,000 tons of ore. 260,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $520,000. Calculate the depletion expense from the information given.    1. & 2. Prepare the entry to record the cost of the ore mine and year-end adjusting entry.   Complete this question by entering your answers in the tabs below.   Depletion Expense General Journal Calculate the depletion expense from the information given. (Round "Depletion per unit" to 3 decimal places.)             Cost   Salvage   Amount subject to depletion   Total units of capacity   Depletion per unit   Units extracted and sold in period   Depletion expense   Complete this question by entering your answers in the tabs below.   Depletion Expense General Journal Prepare the entry to record the cost of the ore mine and year-end adjusting entry.   Journal entry worksheet       Record the cost of the ore mine in cash. Note: Enter debits before credits.         Transaction General Journal Debit Credit 1                                                     Journal entry worksheet       Record the year-end adjusting entry for the depletion expense of ore mine. Note: Enter debits before credits.         Transaction General Journal Debit Credit 2

Q: Salter Mining Company purchased the Northern Tier Mine for $21 million cash. The mine wasestimated…

A: Depletion:   Depletion refers to the process of proportionately distributing the cost of the…

Q: Perez Company acquires an ore mine at a cost of $1,400,000. It incurs additional costs of $400,000…

A: Req-1   Cost ($1400000 + $400000) $18,00,000 Salvage $2,00,000 Amount subjected to depletion…

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: 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: At the beginning of the current year, Bert Company purchased a mineral mine for P26,400,000 with…

A: GIVEN   At the beginning of the current year, Bert Company purchased a mineral mine for P26,400,000…

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: For $42,950,000, Wesco Developers purchased land which their experts believe to contain 28.5 million…

A: Formula used for calculation: Depletion expense = ( Asset cost - Salvage value ) / Total estimated…

Q: Bedox during the year purchased a coal mine for 2,000,000. It cost 500,000 to prepare the coal mine…

A: Depletion rate per ton for the coal mine can be computed with the purchase cost where it was…

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: Bramble Corporation acquires a coal mine at a cost of $456,000. Intangible development costs total…

A: Depletion Expenses:- For the use of Natural Resources, this is an expense that gets charged and…

Q: Tamarisk Corporation acquires a coal mine at a cost of $464,000. Intangible development costs total…

A: Depletion expense = (Cost - Salvage value) * coal extracted / Total coal estimated to be available =…

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 March, 2007, ABC Co. purchased a coal mine for P6,000,000. Removable coal is estimated at…

A: Total cost of mine = Purchase costs + Restoration costs + Development costs = P6000000 + 720000 +…

Q: Pina Colada Corporation acquires a coal mine at a cost of $ 863,800. Intangible development costs…

A: Solution:- Calculation of Depletion note per ton as follows;- =($863,800+$221,000+$93,000-$120,000)…

Q: On July 1, 2021, Lambda Company, a calendar year entity purchased the rights to a mine. The total…

A: Cost of right = P14,000,000 - P2,000,000 = P12,000,000 Reserves used during the year = 25,000 tons x…

Q: For $18,048,000, R.R. Michaels Refining purchased land which their experts believe to contain 18.8…

A: Introduction: Depreciation: A decrease in the value of fixed assets of the company because of usage,…

Q: Stumped, Inc., purchased the timber rights for $7,000,000. It is expected to produce a total of…

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

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: For $42,950,000, Wesco Developers purchased land which their experts believe to contain 28.5 million…

A: Cost of asset=Cost of Land+Development cost=$42,950,000+$12,423,000=$55,373,000

Q: LM Corporation purchased 20 acres of land for P120,000,000. The company expects to extract 5 million…

A: Purchase price of Land = P120,000,000 Exploration cost = P10,000,000 Dry well cost = P1,600,000…

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: On January 1, 2018, Lam Company, a calendar year corporation, purchased the rights to a mine. The…

A: Compute the mine value as follows: Mine for depletion=Total purchase price-Allocation to…

Q: On Jan 1, 20X1 ABC Mining Co. purchased a mine for P2,640,000 with removable ore estimated at…

A: Depletion is the reduction in the value of natural resources due to extraction. In accounting, this…

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: LM Corporation purchased 20 acres of land for P120,000,000. The company expects to extract 5 million…

A: Cost of land = P120,000,000 Expected minerals to be extracted = 5,000,000 Salvage value = P6,000,000…

Q: Bixby Corporation purchased a forklift for $40,000 on July 1. The forklift has an estimateduseful…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: Pronghorn Corporation acquires a coal mine at a cost of $484,000. Intangible development costs total…

A:

Q: Perez Company acquires an ore mine at a cost of $2,660,000. It incurs additional costs of $744,800…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

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: 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: 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: During the year Gambler  acquired an iron ore mine at a cost of $6 million. In addition, when all…

A: GIVEN   During the year Gambler  acquired an iron ore mine at a cost of $6 million. In addition,…

Q: LM Corporation purchased 20 acres of land for P120,000,000. The company expects to extract 5 million…

A: Purchase price of land = P120,000 Expected tons of minerals to be extracted = 5,000,000 Residual…

Q: At the beginning of the current year, Nili company purchased a coal mine for 30,000,000.  Removable…

A: The depletion expense is charged on coal mine as reduction in value of mine with coal removed.

Q: LM Corporation purchased 20 acres of land for P120,000,000. The company expects to extract 5 million…

A: LM Corporation's Purchased 20 acres of land = P120000000 Company expects the extract of minerals = 5…

Q: Billings Corporation acquires a coal mine at a cost of $2,000,000. Intangible development costs…

A: Depletion cost per ton = (Cost of the Coal mine - Residual value) / Estimated quantity of coal…

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: At the beginning of Year 1, Ithaca Incorporated purchased land for $1,500,000 from which it expects…

A: Depletion is the process by which the cost of natural resources such as oil reserves, mineral…

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: Everly Corporation acquires a coal mine at a cost of $400,000. Intangible development costs total…

A: Depletion: Depletion is a process in which the cost of natural resources like oil reserves, mineral…

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: 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: on July 1, 2022, Trisha Company purchased the rights to a mine for P13,200,000, of which P1,200,000…

A: The depreciation expense is charged on tangible assets of the business, the depletion is charged on…

Q: At the beginning of current year, Nilli company purchased a coal mine for P30,000,000. Removable…

A: All natural resources that are being acquired by the business loses their value over the period of…

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: Kelly Company acquired an iron mine for $2,349,000.  Kelly paid a $1,000 filing fee with the county…

A: Gross Profit = Sales - Cost of Goods Sold