Chapter 30 - Depletion Question 1-2. At the beginning of the year 2021, Wise Corp. purchased a mineral mine for P30,000,000 with removable ore estimated at 1,500,000 tons. After it has extracted all the ore, the entity will be required by law to restore the land to the original conditions at an estimated cost of P2, 500,000. The present value of the estimated restoration cost is P1,800,000. The estimated residual value of the property is P3,000,000 During the current year, the entity incurred P3, 800,000 of cost in developing the property and preparing the mine for production and removed 90,000 tons and sold 70,000 tons of ore. Q1. What amount should be depletable and at what rate per unit? 33,000,000 30.00 per unit b. 27,800,000 : 29.67 per unit 32,600,000 21.73 per unit d. 30,000,000 : 18.97 per unit a. C. Q2. What amount should be reported as depletion for the current year? a. 2,495,700 b. 3,000,000 C. 32,600,000 d. 1,941,000

VIEW PUncles Current Attempt in Progress On December 31, 2025, Vaughn Inc. has a machine with a book value of $1,222,000. The original cost and related accumulated depreciation at this date are as follows. Machine Less: Accumulated depreciation Book value (a) $1,690,000 Depreciation is computed at $78,000 per year on a straight-line basis. Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal. Date 468,000 Aug. 31, 2026 $1,222,000 A fire completely destroys the machine on August 31, 2026. An insurance settlement of $559,000 was received for this casualty. Assume the settlement was received immediately. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the…

please answer question 19

Natural Resources The Hollister Company acquires a silver mine at the cost of $2,100,000 on January 1. Along with the purchase price Hollister pays additional costs associated with development of $50,000, Hollister expects the mine will have a salvage value of $300,000 once all the silver has been mined. Best estimates are that the mine contains 250,000 tons of ore. Required a: Prepare the entry to record the purchase of the silver mine. b. Prepare the December 31 year-end adjusting entry to record depletion is 60,000 tons of ore are mined and all the ore is sold, c. Prepare the December 31 year-end adjusting entry to record depletion is 60,000 tons of ore are mined but only 15,000 tons of the are are sold Description Credit 4 # Purchase of silver mine # = To record depletion on silver mine Siver inventory To record depletion on silver mine Debit

Haresh

Problem J:  On January 1, 2021, the Reddick Company purchased a mining right for P30,000,000. The mine's  recoverable ore reserves are estimated to be 4,000,000 tons.  Following the extraction of all ore, the company will be obligated by law to return the land to its  original state. The present value of the restoration cost is P2,000,000. The company estimated that  the property may be sold for P5,000,000. At a cost of P6,000,000, roads were built and other  development costs were invested to aid in the extraction and transportation of the mined ore in  early 2021. 200,000 tons of ore were extracted and sold in 2021.  A new study conducted by a new mining engineer on December 31, 2022, revealed that 5,000,000  tons of ore were available for mining. 225,000 tons of ore were mined and sold in 2022.   How much depletion expense should be recognized in 2022?

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Required information [The following information applies to the questions displayed below.] Montego Production Company is considering an investment in new machinery for its factory. Various information about the proposed investment follows: Initial investment Useful life Salvage value Annual net income generated Montego's cost of capital Assume straight line depreciation method is used. Help Montego evaluate this project by calculating each of the following: $ 860,000 6 years Net Present Value $ 20,000 $ 66,000 11% Required: 4. Recalculate Montego's NPV assuming its cost of capital is 12 percent. (Future Value of $1, Present Value of $1. Future Value Annuity of $1, Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided. Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.

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am. 105.