Pronghorn Corporation acquires a coal mine at a cost of $484,000. Intangible development costs total $121,000. After extraction has occurred, Pronghorn must restore the property (estimated fair value of the obligation is $96,800), after which it can be sold for $193,600. Pronghorn estimates that 4,840 tons of coal can be extracted.If 847 tons are extracted the first year, prepare the journal entry to record depletion. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit

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

A: Net present value is the difference between present value cash inflow minus present value of cash…

Q: n 2018, IRIS Company paid ₱4,000,000 to purchase land containing a total estimated 160,000 tons of…

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

Q: In 2018, IRIS Company paid ₱4,000,000 to purchase land containing a total estimated 160,000 tons of…

A: Given in the question: Value of land at beginning 2018 = ₱4,000,000 Salvage value = ₱800,000 Total…

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: In January 2019, Straw Corporation purchased a mineral mine for P9,800,000 with removable ore…

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

Q: 6. On July 1, 2020, FREESIA Company purchased the rights to a mine for ₱13,200,000, of which…

A: Depletion is charged in books in order to record reduction in value of natural resources over the…

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: a. How much is the depletion charge in 2022? b. Assuming that of the 300,000 ounces of gold…

A: Depletion refers to the reducing in the value of natural resources of the earth from extraction of…

Q: Novak Corporation acquires a coal mine at a cost of $ 831,000. Intangible development costs total $…

A: Total Cost of mine = Total purchase price + Development costs + restoration costs =…

Q: In January 2019, Straw Corporation purchased a mineral mine for P9,800,000 with removable ore…

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

Q: Early in the current year, Tokay Co. purchased the Silverton Mine at a cost of $20,000,000. The mine…

A: Natural resources: Resources that occur from nature are called natural resources. It is not…

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: In January 2018, HUKAY Mining Corporation purchased a mineral mine for P7,200,000 with removable ore…

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

Q: What is the total carrying value of the manufacturing plant (machine, and equipment) as of December…

A: All the costs incurred to make the asset ready for its intended use shall be capitalized to the…

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: Waterway Corporation acquires a coal mine at a cost of $ 476,000. Intangible development costs total…

A: Depletion: It is often defined as a fall in the value of a natural resource because of its…

Q: On January 2, 2018, ABC Company purchased land for ₱450,000, from which it estimated that 400,000…

A: Cost of Sales : It is the amount of cost that made the goods available for sale which typically will…

Q: f 18,000 tons were extracted during the first year, which of the following would be included in the…

A: Journal refers to the process of recording all the monetary transactions which shows all the credit…

Q: in 2020, Tableta company paid P4,000,000 to purchase a land containing a total estimated 160,000…

A: Annual depreciation= (cost of the assets  - residual value) / life of the assets = (P1,500,000-0) /…

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: Sunny Company paid 4,000,000 for property containing natural resources of 2,500,000 tons of ore. The…

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

Q: On July 1, 2017, DOTA Company purchased the rights to a mine. The total purchase price was…

A: Depletion cost is charged on to the extractable resources and not to land or equipment, thus only…

Q: On January 1, 2021, a business paid $6.400,000 for land with mineral deposits. Over the following…

A: The process of defining, assessing, and reporting transactions to regulatory authorities, tax…

Q: Questions: What is the depletion for 2020? * What is the depreciation for 2020? *

A: Tangible assets are depreciated where as intangible assets/ rights are depleted over the useful…

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

A: Depletion expense is a charge against profits for the use of natural resources.it is most commonly…

Q: Lipaopao Corporation acquires a coal mine at a cost of p 5,000,000. Intangible development costs…

A: Initial cost of asset will include cost of acquisition, development cost and present value of…

Q: eight years. However, after all the resources are removed, the equipment will be of no use and will…

A: Depreciatioin is charged to record reductiion in value of asset over the period of time.…

Q: In 20x1, Newman Company paid P1,000,000 to purchase land containing a total estimated 160,000 tons…

A: Solution: Total cost of land= P1,000,000. Estimated value after mineral have been removed= P200,000…

Q: On January 2, 2018, ABC Company purchased land for ₱450,000, from which it estimated that 400,000…

A: SOLUTION- DEPLETION IS A METHOD FOR ALLOCATING THE EXPENSE OF HARVESTING NATURAL PRODUCTS FROM EARTH…

Q: how much should the company include as depletion in its cost of goods sold? * 1,440,000

A: The cost incurred in producing the goods sold, such as direct cost, is known as the cost of goods…

Q: What are the estimated depletion and depreciation charges for the 7th year?   Depletion Depreciation…

A:

Q: On July 1, 2020, FREESIA Company purchased the rights to a mine for ₱13,200,000, of which ₱1,200,000…

A: Answer 1) Given: Depletion base =₱13,200,000-₱1,200,000=₱12000000Salvage value =0

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: Grant Company has acquired a machine and equipment on January 2, 2018. The cost of the machine…

A: Calculation of Depreciation   1. MACHINE Depreciation on Machinery = cost-residual value / useful…

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: MINA MINING CO. has acquired a tract of mineral land for P50,000,000. Mina Mining estimates  that…

A: "As per the policy of our company, we are allowed to answer only the first three sub-parts in case…

Q: Crane Corporation acquires a coal mine at a cost of $404,000. Intangible development costs total…

A: The question is based on the concept of Journal Entry.

Q: Frank acquires a coal mine at a cost of 400,000. Intangible development costs total 100,000. After…

A: Depreciable cost= [Purchase cost + Development cost + Fair value obligation - sale value] / Number…

Q: On June 1, 2021, ABC Company purchased rights to a mine for P30,000,000, of which, P3,000,000 was…

A: Cost of mine = Total purchase value - Amount allocable to land = 30000000 - 3000000 = 27,000,000

Q: n July 1, 2020, FREESIA Company purchased the rights to a mine for ₱13,200,000, of which ₱1,200,000…

A: Solutions: 1) Depletion is charged in books in order to record reduction in value of natural…

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: 7. On July 1, 2020, FREESIA Company purchased the rights to a mine for ₱13,200,000, of which…

A: Depreciation is charged to record reduction in value of asset over the period of time.

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: On January 2, 2018, ABC Company purchased land for ₱450,000, from which it estimated that 400,000…

A: When fixed assets are purchased, they will be recorded at their purchase cost. When they are put…

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: In January 2020, Fritz Mining Corporation purchased a mineral mine for $6,300,000 with removable ore…

A: Calculate the depletion cost per unit as follows: Depletion cost per unit = (Purchase cost - Ore…

Q: In January 2022, Proton Mining Corporation purchased a minera mine for P4,200,000 with removable ore…

A: Under the units-of-activity method of depreciation, the asset's cost (less any salvage value) is…

Q: On July 1, 2020, FREESIA Company purchased the rights to a mine for ₱13,200,000, of which ₱1,200,000…

A: Depletion is charged in books in order to record reduction in value of natural resources over the…