Lipaopao Corporation acquires a coal mine at a cost of p 5,000,000. Intangible development costs total P 1,200,000. After extraction has occurred, Lipaopao must restore the property (estimated fair value of the obligation is P600,000), after which can be sold for P 1,700,000. Baton estimates that 50,000 tons of coal can be extracted. If 9,000 tons were extracted during the first year, which of the following would be included in the journal entry to record depletion? a. Debit to Accumulated Depletion for P 918,000 b. Debit to inventory for P 918,000 c. Credit to inventory for P 900,000 d. Credit to Accumulated Depletion for P 1,530,000

Sheridan Company acquires a coal mine at a cost of $1750000. Intangible development costs total $358000. After extraction has occurred, Sheridan must restore the property (estimated fair value of the obligation is $190000), after which it can be sold for $202000. Sheridan estimates that 5000 tons of coal can be extracted. What is the amount of depletion per ton? $384 $419 $460 $350

Schefter Mining operates a copper mine in Wyoming. Acquisition, exploration, and development costs totaled $7.5 million. Extraction activities began on July 1, 2024. After the copper is extracted in approximately six years, Schefter is obligated to restore the land to its original condition, including constructing a park. The company's controller has provided the following three cash flow possibilities for the restoration costs: 1. 2. 3. Cash Flow $ 630,000 730,000 830,000 Probability 30% 30% 40% The company's credit-adjusted, risk-free rate of interest is 4%, and its fiscal year ends on December 31. Note: Use appropriate factor(s) from the tables provided. Round other intermediate calculations to the nearest whole dollar. Enter your answers in whole dollars. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: 1. What is the initial cost of the copper mine? 2. How much accretion expense will Schefter report in its 2024 income statement? 3. What is the book…