In 2020, a company acquired a mine for $10.5 million. The mine contained an estimated 10...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
In 2020, a company acquired a mine for $10.5 million. The mine contained an estimated 10 million tons of iron ore and once the iron is depleted the mine will have a residual value of $500,000. Before beginning its operations, the company bought and installed equipment at a cost of $2,500,000 that will have no value once iron ore is depleted. The production of iron ore is given in the table below. Determine the yearly depreciation expense for the mining equipment using units-of-production method (1); and the mine's yearly depletion expense (2). Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Production, mln tons 0.4 0.8 1 1.2 1.2 1.2 1.2 1 1 0.6 0.4 In 2020, a company acquired a mine for $10.5 million. The mine contained an estimated 10 million tons of iron ore and once the iron is depleted the mine will have a residual value of $500,000. Before beginning its operations, the company bought and installed equipment at a cost of $2,500,000 that will have no value once iron ore is depleted. The production of iron ore is given in the table below. Determine the yearly depreciation expense for the mining equipment using units-of-production method (1); and the mine's yearly depletion expense (2). Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Production, mln tons 0.4 0.8 1 1.2 1.2 1.2 1.2 1 1 0.6 0.4
Expert Answer:
Answer rating: 100% (QA)
Both schedules are attached below You may kindly note that all amounts are in Happy Reading 1Depreci... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
At the beginning of 2022, Callaway Company acquired a mine for $850,000. Of this amount, $100,000 was ascribed to the land value and the remaining portion to the minerals in the mine. Surveys...
-
In Figure three 10 000 kg ore cars are held at rest on a mine railway using a cable that is parallel to the rails, which are inclined at angle = 30o. The cable stretches 15 cm just before the...
-
The following table shows observation A on factor demands X, X2, factor prices, W, W2 and output, y for a cost minimizing firm. Fill in the blanks in observation B such that firm's behaviour is...
-
Choose a company or product that you have been noticing or admiring. Develop a plan to advertise this product that involves the United States and at least one other country, and three forms of media....
-
Jessie Stores uses the periodic system of calculating inventory. The following information is available for December of the current year, when Jessie Stores sold 500 units of inventory. Using the...
-
In problem graph of the functions using the graph of functions f and g below y = -g(x) Ax) 8 g(ax)
-
A column arrangement similar to Figure \(15-2\) is used for organic liquids. A large reservoir of water is under the column. The water is stirred and solute concentration in the water is constant....
-
Heather Smith is considering a bond investment in Locklear Airlines. The $1,000 par value bonds have a quoted annual interest rate of 11 percent and the interest is paid semiannually. The yield to...
-
In the Global Company Profile article on page 519 of your Operations Management textbook, you are introduced to the original concept that Jeff Bezos had for Amazon - to design a distributor with zero...
-
For the network of Fig. 7.86, determine: a. VGSQ and IDQ b. VDS, VD, VC and VS. 12 V 22 kQ Gso 1 1.6 k FIG. 7.86
-
There are two investment alternatives. The first alternative is to buy a 10-year-term 10,000 TL bond for 7,500 TL. The bond yields a nominal 20% coupon payment each semester. Earned coupon payments...
-
What are the mechanisms through which organizational culture influences employee motivation, job satisfaction, and commitment, and how can leaders leverage cultural elements to enhance employee...
-
48. Suppose the circuit shown in Example Problem 4 has these values: R, = 255 Q, R2 = 290 2, and = 45 Volt battery. No other information is available. a. What is the current in the circuit? b. What...
-
On a 60 degree F day what is the time between thunder and lightning when the storm is directly overhead Use equation Time=d/1.09t/=1050 d is the distance (feet) between the observer a lightening and...
-
How does an organization's culture need to change to ensure the sustainability of the program change for treatment of chronic conditions? What potential aspects may affect this change?
-
Consider a soil-mantled hillslopes with a relative gentle steepness (landsliding does not occur). Rates of erosion and deposition on the hillslope are more closely related to? Choose just one slope...
-
the type of indivisual reward that calculates pay by the number of units
-
Nike manufactures shoes and sportswear. How has the Internet changed the way this company communicates with its suppliers and retail customers?
-
Jacksonville Window Co. reports the following for 2013: Retained earnings, January 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $335,200 Selling expenses . . ....
-
On January 1, 2013, Picard Inc. purchased a new piece of equipment from LaForge Engineering to expand its production facilities. The equipment was purchased at a cost of $800,000. Picard financed the...
-
Make the journal entry (or entries) necessary to record the following transaction: Sold merchandise costing $14,000 for $22,000. Of the $22,000, $4,000 was received in cash and the remainder was on...
-
In 1989, PepsiCo Inc. acquired three international franchise-food operationsPizza Hut, Taco Bell, and Kentucky Fried Chicken. PepsiCo paid an aggregate of \($3.4\) billion for the three businesses,...
-
Both trading and available-for-sale accounting methods are considered mark-to-market accounting for investments. Describe their similarities and differences. Which of the two methods do you think...
-
In 2006, CKX, Inc., a New York sports entertainment company, paid \($50\) million for an 80 percent ownership interest in G.O.A.T. LLC. (G.O.A.T. stands for Greatest of All Time and is a business...
Study smarter with the SolutionInn App