On July 1, 2019, Amplex Company purchased a coal mine for $2 million. The estimated capacity of the mine was 800,000 tons. During 2019, Amplex mines 10,000 tons of coal per month and sells 9,000 tons per month. The selling price is $30 per ton and production costs (excluding depletion and depreciation) are $8 per ton. At the end of the mine’s life, Amplex estimates that the present value of the cost to restore the land is $300,000, after which it can be sold for $100,000. Amplex also purchased some temporary housing for the miners at a cost of $170,000. The housing has an expected life of 10 years but is expected to be sold for $10,000 at the end of the mine’s life. The housing is depreciated using the activity method. Amplex uses the FIFO cost flow assumption and its discount rate is 10%.
Required:
College Accounting, Chapters 1-27
Financial Accounting
Managerial Accounting: The Cornerstone of Business Decision-Making
Financial & Managerial Accounting
Accounting Information Systems
Financial And Managerial Accounting
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Fundamentals of Financial Management (MindTap Course List)
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ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
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STATISTICS F/BUSINESS+ECONOMICS-TEXT
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Essentials of Business Communication (MindTap Course List)
MKTG 12:STUDENT ED.-TEXT
Financial Accounting
College Accounting (Book Only): A Career Approach
Financial & Managerial Accounting
Accounting (Text Only)
College Accounting (Book Only): A Career Approach
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Statistics for Business & Economics, Revised (MindTap Course List)
Fundamentals of Financial Management (MindTap Course List)
Exploring Economics
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Survey of Accounting (Accounting I)
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PAYROLL ACCT.,2019 ED.(LL)-TEXT
Macroeconomics
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Economics For Today
Microeconomics
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Practical Management Science
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Cornerstones of Financial Accounting
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