Mining Expedition Company purchased a coal mine on January 1, 2010, for $8,400,000 and expects the mine to produce 3,500,000 pounds of coal over its useful life. In 2010, 1,100,000 pounds of coal were recovered. In 2011, 900,000 pounds of coal were recovered. What is the depletion for each of these years?
Answer to relevant QuestionsUnique Quality Recourses purchased a patent for $150,000 on July 1, 2009. The estimated useful life is 20 years. The legal life is 15 years. What is the amortization expense for the fiscal year ended June 30, 2010?Bargain Basement Shopping Corporation purchased new credit card equipment. The invoice price of the equipment was $25,000. Bargain also had the following expenses associated with purchasing this equipment:Shipping and ...Suppose an asset cost $28,000 and has an estimated salvage value of $1,000. At the end of four years, the carrying value of the asset is $16,000. What is the useful life of the asset? Assume straight-line depreciation. True Light Electricity Company purchased land for $180,000 cash and a building for $420,000 cash. The company paid attorney fees of $22,000 associated with the purchase and allocated that cost to the building and the land ...Classify the following items as either a capital expenditure or a revenue expenditure (an expense):1. Changed oil in the delivery truck2. Replaced the engine in the delivery truck3. Paid sales tax on the new delivery truck4. ...
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