Colorado Mining paid $564.000 to acquire a mine with 47,000 tons of coal reserves. The financial statements model shown on the last tab reflects Colorado Mining's financial condition just prior to purchasing the coal reserves. The company extracted 24.675 tons of coal in year 1 and 21150 tons in year 2 Required a. Compute the depletion charge per unit b-1. Compute the depletion expense for years 1 and 2 in a financial tements. b-2. Record the acquisition of the coal reserves and the depletion expense for years 1 and 2 in a financial statements model.

Colorado Mining paid $564.000 to acquire a mine with 47,000 tons of coal reserves. The financial statements model shown on the last tab reflects Colorado Mining's financial condition just prior to purchasing the coal reserves. The company extracted 24.675 tons of coal in year 1 and 21150 tons in year 2 Required a. Compute the depletion charge per unit b-1. Compute the depletion expense for years 1 and 2 in a financial tements. b-2. Record the acquisition of the coal reserves and the depletion expense for years 1 and 2 in a financial statements model.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 3MCQ: When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash...

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