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.   On March 30, 2021, Tableta Company purchased mining equipment costing P1,500,000. The useful life of the equipment is 10 years.   Extraction activities began in 2021 and by the end of the year, 20,000 tons had been recovered and sold.   The depreciation expense pertaining to the mining equipment in 2021 amounted to?

For the past several years, Emily Page has operated a part-time consulting business from her home. As of June 1, 2010, Emily decided to move to rented quarters and to operate the business, which was to be known as Bottom Line Consulting, on a full-time basis. Bottom Line Consulting entered into the following transactions during June: June 1. The following assets were received from Emily Page: cash, $20,000; accounts receivable, $4,500; supplies, $2,000; and office equipment, $11,500. There were no liabilities received. Paid three months’ rent on a lease rental contract, $6,000. Paid the premiums on property and casualty insurance policies, $2,400. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $2,700. Purchased additional office equipment on account from Office Depot Co., $3,500. Received cash from clients on account, $3,000. Paid cash for a newspaper advertisement, $200. Paid Office Depot Co. for part of the debt…

Sweet Manufacturing purchased a machine on August 1, 2023 for use in its factory. Sweet paid $549,600 for the machine and estimated that it had a useful life of 10 years, at the end of which time the machine was expected to have a residual value of $48,000. During its life, the machine was expected to produce 264,000 units. During 2023, the machine produced 26,000 units, and produced 40,000 in 2024. The machine was subject to a 20% CCA rate, and Sweet's year-end was December 31. The machine is eligible for the Accelerated Investment Incentive. Calculate the annual depreciation amount for 2023 and 2024 using the Capital Cost Allowance method. Please ensure that your answer is correct.

schefter mining operates a copper mine in wyoming. Acquisitions, explorations, and development costs totaled $8.3 million. extraction activities began on July 1, 2024. After the copper is extracted approximately six years, schefter is obligated to restore the land to its original condition, including constructing a park. the company controller has 3 cash flow possibilities for restoration costs 1. $710000 at 25% probability 2. $810000 at 25% probability 3. $910,000 at 50% probability the companys credit -adjusted rate of interest is 6% and ends fiscal year dec 31st. required 1. what is the initial cost of the copper mine? 2. how much accreciation will schefter report in its 2024 income statement? 3. what is the book value of the asset retirement obligation that schefter will report in its 2024 balance sheet? 4. assume the actual restoration costs incurred in 2030 totaled $881,000. what amount of gain or loss will schefter recognize on retirement of the liability? cost of mine accretion…

LM Corporation purchased 20 acres of land for P120,000,000. The company expects to extract 5 million tons of minerals from this lad over the next 20 years, at which time, residual value shall be P6,000,000. The following costs were also incurred related to the mining activities: Successful exploration costs, P10,000,000 and cost of P1,600,000 for dry wells. During the first 2 years of the mine’s operations, 300,000 tons were mined each year and sold for P80 per ton. How much would be the depletion for the second year?

On October 1, 2022, Abbott Inc. purchased equipment costing $700,000 by paying $150,000 cash and signing a $550,000, 10%, 1-year note for the remainder. The face value of the note plus interest is due when the note matures in one year. The equipment will be used in a variety of R&D activities. It is expected to have a useful life of 5-years and a residual value of $20,000. Abbott uses the DDB method for the equipment. Required: In the journal below, record the equipment purchase on October 1, and record depreciation and accrued interest for 2022. Round all calculations to the nearest whole month and whole dollar.

Qasio Private Limited (Pvt) developed a new intangible product. In developing this intangible asset, it incurred the following costs: Research R50 000, Development Costs R150 000, Marketing costs R 25 000. The Research costs were incurred between July 2020 and October 2020. The Development costs were incurred between November 2020 and December 2020. The useful life of the product arising from this project is expected to be five years, the Intangible asset was brought into use effective 1 January 2021. Additional information Qasio has a 31 December year end Required Prepare ALL the journal entries as at 31 December 2020 and 31 December 2021.

1. The Fairy Company purchased a site for limestone quarry for P 100,000 on January 2, 2020. It estimates that the quarry will yield 400,000 tons of limestone. It estimates that its retirement obligation has a fair value of P 20,000 after which the land can be sold for P 10,000. In 2020, 80,000 tons were quarried and 60,000 tons sold. Cost of production (excluding depletion) are P4 per ton. Compute the total cost of goods sold for 2020.

On January 1, 2022, Layag Company paid P11,000,000 for property containing natural resource of 2,000,000 tons of ore. The present value of the estimated cost of restoring the land after the resource is extracted is P900,000. The land will have a value of P1,500,000 after it is restored for suitable use. Tunnel, bunk houses and other fixed installations are constructed at a cost of P8,000,000 and such expenditures are charged to mine improvements. Operations began on January 1, 2022 and resources removed totaled 600,000 tons. During 2023, a discovery was made indicating that available resource after 2023 will totaled 1,875,000 tons. At the beginning of 2023, additional bunk houses were constructed in the amount of P770,000. In 2023, only 400,000 tons were mined because of a strike.   27)  What amount should be recorded as depletion for 2023? A. 3,120,000 B. 2,850,000 C. 1,280,000 D.2,080,000 28)  What amount should be recorded as depreciation for 2023?A. 1,120,000 B. 2,400,000 C.…

A company purchased land containing mineral deposits for $6,400,000 on January 1, 2021. The company expects to mine 1,600,000 tons of mineral over the next six years. The company has also purchased mining equipment for $800,000. The equipment has an estimated residual value of $160,000 and an expected life of 10 years and can be used at other mining sites. By the end of 2021, the company has mined and sold 240,000 tons. Management calculates depreciation of the equipment to be $96,000 [($800,000 − $160,000) × (240,000 tons/1,600,000 tons)]. Which of the following statements is correct?   Multiple Choice   Management should depreciate the equipment evenly over six years.   Management should not subtract the residual value in calculating depreciation.   Management should depreciate the equipment over 10 years.   Management’s calculation is correct.