Business
Engineering
Math
Science
Social Science
Cornerstones of Financial Accounti...
Solutions
Cornerstones of Financial Accounti...
Depletion Rate
Oxford Quarries purchased 45 acres of land for $185,000. The land contained stone that Oxford will remove from the ground, finish, and then sell as facing material for buildings. Oxford spent $435,000 preparing the quarry for operation. Oxford estimates that the quarry contains 55,000 tons of usable stone and that it will require 6 years to remove all the usable stone once quarrying begins. Upon completion of quarrying, Oxford estimates that the land will have a residual value of $11,150. During 2019, Oxford extracted 8,500 tons of stone.
Required:
1. Compute the depletion rate per ton.
2. Prepare the journal entry to record the extraction of the stone.
Concept introduction:
Depletion:
When natural resources such as coal, iron ore, oil reserves and mineral etc. are extracted from the earth the company records the cost of extraction to the particular unit of the natural resource that is being extracted and the process of allocating cost according to the usage of natural resource during a specific period is called as depletion.
Requirement 1:
Depletion rate per ton for Oxford Quarries.
Calculation of Depletion rate per ton:
Firstly we have to determine the cost of the stone in order to calculate the depletion rate. The cost of the natural resource includes all costs necessary to get the quarry in use...
Concept introduction:
Depletion:
When natural resources such as coal, iron ore, oil reserves and mineral etc. are extracted from the earth the company records the cost of extraction to the particular unit of the natural resource that is being extracted and the process of allocating cost according to the usage of natural resource during a specific period is called as depletion.
Requirement 2:
To explain:
Prepare journal entry to record the extraction of stone.
Chapter 7 Solutions
Additional Business Solutions
Find more solutions based on key concepts
Show solutions addWhat role do intelligent agents play in the operation of a decision-support system?
Accounting Information Systems
Employee net pay Lindsey Vaters weekly gross earnings for the week ended March 9 were 800, and her federal inco...
Corporate Financial Accounting
Entries into T accounts and trial balance Ken Jones, an architect, organized Jones Architects on April 1, 2018....
Financial & Managerial Accounting
When Chinas clothing industry expands, the increase in world supply lowers the world price of clothing. a. Draw...
Principles of Macroeconomics (MindTap Course List)
A manager of a large corporation recommends a 10,000 raise be given to keep a valued subordinate from moving to...
STATISTICS F/BUSINESS+ECONOMICS-TEXT
What does the invisible hand of the marketplace do?
Brief Principles of Macroeconomics (MindTap Course List)
The company that you manage has invested 5 million in developing a new product, but the development is not quit...
Principles of Economics (MindTap Course List)
Show that (nk)=(nnk). Give an interpretation involving subsets.
Probability and Statistics for Engineering and the Sciences
If a firms ROE is low and management wants to improve it, explain how using more debt might help.
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Name a way that your family interacts in the factor market and a way that it interacts in the product market.
Principles of Microeconomics (MindTap Course List)
What are the techniques used to forecast human resources supply?
Foundations of Business (MindTap Course List)
(Short-Run Profit Maximization) Answer the following questions on the basis of the monopolists situation illust...
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Telling Success Stories: You can best showcase your talents if you are ready with your own success stories that...
Essentials of Business Communication (MindTap Course List)
PORTFOLIO BETA A mutual fund manager has a 20 million portfolio with a beta of 1.7. The risk-free rate is 4.5%,...
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
What is a mutually exclusive project? How should managers rank mutually exclusive projects?
Fundamentals of Financial Management (MindTap Course List)
Multiple production department factory overhead rate method Four Finger Appliance Company manufactures small ki...
Financial And Managerial Accounting
Use die Internet to identity several applications of neural networks. Write a brief summary of these applicatio...
Principles of Information Systems (MindTap Course List)
______________ is an independent business unit that is treated as a distinct entity enabling its revenue and ex...
Fundamentals of Information Systems
Briefly describe how the Internet works.
Fundamentals of Information Systems
What are the basic characteristics of a NoSQL database?
Database Systems: Design, Implementation, & Management
Which security protocols are used to protect e-mail?
Principles of Information Security (MindTap Course List)
What is data redundancy, and which characteristics of the file system can lead to it?
Database Systems: Design, Implementation, & Management
Use the Internet to find information about a data dictionary. Write a one-page paper that describes other types...
A Guide to SQL
Briefly define the term business process reengineering.
Principles of Information Systems (MindTap Course List)
For the stopping sight distance problem of Figure 18.12, estimate the stopping distance for speed of 27 mph, us...
Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)
What are the two basic types of brake rotors used on todays vehicles?
Automotive Technology: A Systems Approach (MindTap Course List)
Name three alloying elements added to steel.
Precision Machining Technology (MindTap Course List)
-21 Derive the equations of the deflection curve for a cantilever beam AB supporting a distributed load of peak...
Mechanics of Materials (MindTap Course List)
The particle characteristics of a soil are given below. Draw the particle-size distribution curve and find the ...
Fundamentals of Geotechnical Engineering (MindTap Course List)
What are four types of feasibility? Which type focuses on total cost of ownership? Which type do users primaril...
Systems Analysis and Design (Shelly Cashman Series) (MindTap Course List)
How does technological obsolescence constitute a threat to information security? How can an organization protec...
Management Of Information Security
Three groups of students from the Geotechnical Engineering class collected soil-aggregate samples for laborator...
Principles of Geotechnical Engineering (MindTap Course List)
The bar ABCD has a built-in support at A. Calculate the force and the couple exerted by the support on the bar....
International Edition---engineering Mechanics: Statics, 4th Edition
What is the most common control voltage used in an intrinsically safe system?
Electric Motor Control
Find the expansion work done when the volume of a gas is increased from 0.2 m3 to 1.5 m3 against a constant pre...
Fundamentals of Chemical Engineering Thermodynamics (MindTap Course List)
Thermal insulation is not permitted to be installed within __________________ in. (mm) of the top or __________...
EBK ELECTRICAL WIRING RESIDENTIAL
A Citizens’ Guide to the Cure of the Environment states the following: Avoid buying milk in white plastic conta...
Solid Waste Engineering
Solve Problem 8.4-1 by the ultimate strength method (use the tables in Part 8 of the Manual).
Steel Design (Activate Learning with these NEW titles from Engineering!)
Describe thrust angle and why it is important foi wheel alignment
Automotive Technology
List features that are common to most keyboards. Describe how to use a keyboard shortcut.
Enhanced Discovering Computers 2017 (Shelly Cashman Series) (MindTap Course List)
Draw the influence lines for the vertical reactions at supports A, C, E, and G of the beams shown in Figs. P8.2...
Structural Analysis
Which protocols header would a Layer 4 device read and process? a. IP b. TCP c. ARP d. HTTP
Network+ Guide to Networks (MindTap Course List)
