(b)Also compute the depreciation and depletion for the first year assuming actual production of 5,400 tons. Nothing occurred duringthe year to cause the company engineers to change their estimates of either the mineral resources or the life of the structures andequipment. (Round per unit answers to 2 decimal places, e.g. 0.45 for computational purposes and final answers to O decimal places, e.g.45,892.)Depletion$Depreciation $ Marigold Mining Company has purchased a tract of mineral land for $972,000. It is estimated that this tract will yield 129,600 tons ofore with sufficient mineral content to make mining and processing profitable. It is further estimated that 6,480 tons of ore will bemined the first and last year and 12,960 tons every year in between. (Assume 11 years of mining operations.) The land will have asalvage value of $32,400.The company builds necessary structures and sheds on the site at a cost of $38,880. It is estimated that these structures canserve 15 years but, because they must be dismantled if they are to be moved, they have no salvage value. The company does not intendto use the buildings elsewhere. Mining machinery installed at the mine was purchased secondhand at a cost of $64,800. Thismachinery cost the former owner $162,000 and was 50% depreciated when purchased. Marigold Mining estimates that about half ofthis machinery will still be useful when the present mineral resources have been exhausted, but that dismantling and removal costswill just about offset its value at that time. The company does not intend to use the machinery elsewhere. The remaining machinerywill last until about one-half the present estimated mineral ore has been removed and will then be worthless. Cost is to be allocatedequally between these two classes of machinery.(a)Your answer is correct.

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Description: (b)Also compute the depreciation and depletion for the first year assuming actual production of 5,400 tons. Nothing occurred duringthe year to cause the company engineers to change their estimates of either the mineral resources or the life of the s

Two accounting terms used to describe the decline in asset value over time are depletion and…

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Accounting

Also compute the depreciation and depletion for the first year assuming actual production of 5,400 tons. Nothing occurred during the year to cause the company engineers to change their estimates of either the mineral resources or the life of the structures and equipment. (Round per unit answers to 2 decimal places, e.g. 0.45 for computational purposes and final answers to O decimal places, e.g. 45,892.) Depletion Depreciation +A $ +A

Also compute the depreciation and depletion for the first year assuming actual production of 5,400 tons. Nothing occurred during the year to cause the company engineers to change their estimates of either the mineral resources or the life of the structures and equipment. (Round per unit answers to 2 decimal places, e.g. 0.45 for computational purposes and final answers to O decimal places, e.g. 45,892.) Depletion Depreciation +A $ +A

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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am. 134.
A machine with a cost of $68,856 has an estimated residual value of $5,301 and an estimated life of 3 years or 15,143 hours. It is to be depreciated by the units-of-activity method. What is the amount of depreciation for the second full year, during which the machine was used 4,595 hours? Do not round your intermediate calculations. a. $21,185.00 b. $42,370.00 c. $19,285.16 d. $20,893.70
The Weber Company purchased a mining site for $573,259 on July 1. The company expects to mine ore for the next 10 years and anticipates that a total of 94,508 tons will be recovered. During the first year the company extracted 4,359 tons of ore. The depletion expense is a.$51,961.60 b.$23,966.29 c.$26,459.13 d.$53,643.00
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Hidden Hollow Mining Co. acquired mineral rights for $69,000,000. The mineral deposit is estimated at 60,000,000 tons. During the current year, 13,200,000 tons were mined and sold. a. Determine the depletion rate. If required, round your answer to two decimal places. Sfill in the blank d39a0a00ffc1f93_1 per ton
An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $60,000 and it has an estimated MV of $12,000 at the end of an estimated useful life of 14 years. Compute the accumulated depreciation in the third year and the BV at the end of 5th year of life by each of these methods at the rate of 9%: b. The DB Method (Declining Balance Method)- Provide the complete manual solution (not excel or tables) and cash flow diagram
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XYZ Company incurred the following costs for the month of August when it observed an activity level of 5,000 units Vanable co 532.500 Fixed costs $25,000; Mixed costs $21,500, Total costs $79,000. During October, the activity level was 16,000 units and the cnts incurred were $178,000 If the activity level were expected to be 7,000 units for the month of December, what amount of al costs would be expected? Select one DaS106,000 Ob$124,000 Oc None of the answers given a S115.000 S97.000
Quavo Mining Co. acquired mineral rights for $16,500,000. The mineral deposit is estimated at 36,500,000 tons. During the current year, 10,037,500 tons were mined and sold. a. Determine the amount of depletion expense for the current year. Do not round intermediate calculation and round your answer to nearest whole value.$fill in the blank 1 b. Illustrate the effects on the accounts and financial statements of the depletion expense. For decreases in accounts or outflows of cash, enter your answers as negative numbers. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Balance Sheet Assets = Liabilities + Stockholders' Equity - Accumulated depletion + No effect = No effect + Retained earnings fill in the blank 6 fill in the blank 7 fill in the blank 8 fill in the blank 9 Statement of Cash Flows Income Statement No effect fill in the blank 11 Depletion expense…