During 2022, Demco Mining acquired a mineral mine for $1,500,000 of which $200,000 was ascribed to land value after the mineral has been removed. Geological surveys have indicated that 10 million units of the mineral could be extracted. During 2022, 1,500,000 units were extracted and 1,200,000 units were sold. What is the amount of depletion expensed for 2022? $

During 2022, Demco Mining acquired a mineral mine for $1,500,000 of which $200,000 was ascribed to land value after the mineral has been removed. Geological surveys have indicated that 10 million units of the mineral could be extracted. During 2022, 1,500,000 units were extracted and 1,200,000 units were sold. What is the amount of depletion expensed for 2022? $

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4EB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...

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Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?
Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.
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In January, 2023, Demba Corporation purchased a mineral mine for $3,400,000 with removable ore estimated by geological surveys at 2,000,000 tons. The property has an estimated value of $200,000 after the ore has been extracted. The company incurred $1,000,000 of development costs preparing the mine for production. During 2023, 500,000 tons were removed and 400,000 tons were sold. What is the amount of depletion that Demba should expense for 2023
In 2025, Cullumber Corporation acquired a mineral mine for $3700000 of which $390000 was ascribed to the value of the land after the minerals have been removed. Geological surveys have indicated that 10 million units of the mineral could be extracted. During 2025, 1520000 units were extracted, and 1250000 units were sold. What amount of depletion recorded for 2025? O $562400 O $462500 O $390000 O $503120
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On April 17, 2024, the Loadstone Mining Company purchased the rights to a copper mine. The purchase price plus additional costs necessary to prepare the mine for extraction of the copper totaled $4,040,000. The company expects to extract 1,010,000 tons of copper during a four-year period. During 2024, 251,000 tons were extracted and sold immediately. Required: 1. Calculate depletion for 2024. 2. Is depletion considered part of the product cost and included in the cost of inventory? 1. Depletion for 2024 2. Is depletion considered part of the product cost and included in the cost of inventory?
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In 2020, Tableta Company paid P4,000,000 to purchase a land containing a total estimated 160,000 tons of extractable mineral deposits. The estimated value of the property after the mineral has been removed is P800,000. Extraction activities began in 2021 and by the end of the year, 20,000 tons had been recovered and sold. In 2022, geological studies indicated that the total amount of mineral deposits had been underestimated by 60,000 tons. During 202, 30,000 tons were extracted, and 28,000 tons were sold. What is the depletion rate in 2022? 12.73 20.00 14.00 15.56
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