In January 2020, Company A leased a mineral mine for $3,550.000 with removable estimated geological at 2,500,00 tons Company A incurred $1,150,000 of intangible development costs preparing the property for the extraction of ore. The present value of the cost of the mine estimated to be $250,000. During 2020. 340,000 tons were removed 300.000 tons were sold inventory/depletion balance on December 31, 2020 after the all the sales for the year are recorded will be: $91,120 $86,200 $79,200 $87,80

In January 2020, Company A leased a mineral mine for $3,550.000 with removable estimated geological at 2,500,00 tons Company A incurred $1,150,000 of intangible development costs preparing the property for the extraction of ore. The present value of the cost of the mine estimated to be $250,000. During 2020. 340,000 tons were removed 300.000 tons were sold inventory/depletion balance on December 31, 2020 after the all the sales for the year are recorded will be: $91,120 $86,200 $79,200 $87,80

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 29CE

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On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was estimated at 2,000. The equipment will be depreciated over 10 years using the double-declining balance method. Counting the year of acquisition as one-half year, Mundo should record 2019 depredation expense of: a. 7,680 b. 9,000 c. 9,600 d. 10,000
On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated service life of 5 years and zero residual value. Assume that the straight-line depreciation method is used. Required: Compute the depreciation expense for 2019 for each of the following four alternatives: 1. Horan computes depreciation expense to the nearest day. (Use 12 months of 30 days each and round the daily depreciation rate to 2 decimal places.) 2. Horan computes depreciation expense to the nearest month. Assets purchased in the first half of the month are considered owned for the whole month. 3. Horan computes depreciation expense to the nearest whole year. Assets purchased in the first half of the year are considered owned for the whole year. 4. Horan records one-half years depreciation expense on all assets purchased during the year.
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