FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- A truck acquired at a cost of $202,800 has an estimated residual value of $18,000, has an estimated useful life of 440,000 miles, and was driven 113,000 miles during the year. Determine the following. If required, round your answer for the depreciation rate to 2 decimal places. a. The depreciable cost $ b. The depreciation rate $ per mile c. The units-of-activity depreciation for the year $arrow_forwardA company purchased mining property for $4,875,000 (assume no salvage value) containing an estimated 15,000,000 tons of ore. In Year 1, it mined 689,000 tons of ore and in Year 2, it mined 935,000 tons. 1. What is the depletion rate per ton? -------------------> Calculation: 2. What is the depletion expense for Year 1? ----------> Calculation: 3. What is the depletion expense for Year 2? ----------> Calculation: 4. What is the book value at the end of Year 2? Mining property Less: Accumulated depletion Book Valuearrow_forwardSalter Mining Company purchased the Northern Tier Mine for $21 million cash. The mine was estimated to contain 2.5 million tons of ore and to have a residual value of $1 million. During the first year of mining operations at the Northern Tier Mine, 50,000 tons of ore were mined, of which 40,000 tons were sold. a. Prepare a journal entry to record depletion during the year. b. Show how the Northern Tier Mine, and its accumulated depletion, would appear in Salter Mining Company's balance sheet after the first year of operations. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Show how the Northern Tier Mine, and its accumulated depletion, would appear in Salter Mining Company's balance sheet after the first year of operations. (Amounts to be deducted should be indicated by a minus sign) Property, plant, & equipment Accumulated depletion Mining property: Northern Tier Mine Salter Mining Company Balance…arrow_forward
- Equipment was acquired at the beginning of the year at a cost of $625,000. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $46,635. a. What was the depreciation for the first year? Round your answer to the nearest cent.$ b. Using the rounded amount from Part a in your computation, determine the gain(loss) on the sale of the equipment, assuming it was sold at the end of year eight for $105,608. Round your answer to the nearest cent and enter as a positive amount.$ Loss c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Round your answers to the nearest centarrow_forwardComparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $391,000. The equipment was expected to have a useful life of four years, or 9,200 operating hours, and a residual value of $32,200. The equipment was used for 3,500 hours during Year 1, 2,900 họurs in Year 2, 1,700 hours in Year 3, and 1,100 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) the units- of-output method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar. Depreciation Expense Year Straight-Line Method Units-of-Output Method Double-Declining-Balance Method Year 1 Year 2 Year 3 $4 Year 4 $4 Total 2. What method…arrow_forwardThe Weber Company purchased a mining site for $1,750,000 on July 1. The company expects to mine ore for the next 10 years and anticipates that a total of 400,000 tons will be recovered. The estimated residual value of the property is $150,000. During the first year, the company extracted 6,500 tons of ore. The depletion expense is $26,000 $15,000 $16,000 $17,500arrow_forward
- Weber Company purchased a mining site for $617,434 on July 1. The company expects to mine ore for the next 10 years and anticipates that a total of 96,158 tons will be recovered. The estimated residual value of the property is $52,737. During the first year, the company extracted 4,119 tons of ore. The depletion expense is a.$52,737.00 b.$56,469.70 c.$26,448.25 d.$24,189.22arrow_forwardThe Weber Company purchased a mining site for $580,128 on July 1. The company expects to mine ore for the next 10 years and anticipates that a total of 85,978 tons will be recovered. During the first year the company extracted 4,283 tons of ore. The depletion expense is a.$28,910.25 b.$53,500.20 c.$45,126.00 d.$26,651.16arrow_forwardSubject:arrow_forward
- 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.$53,643.00arrow_forwardSalter Mining Company purchased the Northern Tier Mine for $50 million cash. The mine was estimated to contain 6.47 million tons of ore and to have a residual value of $1.5 million.During the first year of mining operations at the Northern Tier Mine, 55,000 tons of ore were mined, of which 18,000 tons were sold. a. Prepare a journal entry to record depletion during the year. b. Show how the Northern Tier Mine, and its accumulated depletion, would appear in Salter Mining Company's balance sheet after the first year of operations.arrow_forwardDepletion Expense Prepare the entry to record the cost of the ore mine and year-end adjusting entry. General Journal View transaction list Journal entry worksheet < A B Record the cost of the ore mine in cash. Transaction 1 Note: Enter debits before credits. General Journal Debit Creditarrow_forward
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