On January 1, 2017, the Jones-Smith Corp. acquired a parcel of land for $6,000,000 from which it
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Question:
During 2017, 15,000 tons of ore were mined and 10,000 tons were sold. During 2018, 19,000 tons of ore were mined and 20,000 tons were sold. At the beginning of 2018, the estimated amount of ore remaining was revised to 250,000 tons.
Assume Jones-Smith Corp.'s discount rate is 10%.
Please calculate the following amounts that will be reported on the company's financial statements for 2017 and 2018.
For year 12/31/2017 and year 12/31/18
Costs of Goods sold
Iron ore inventory
iron ore reserves, net of accumulated depletion
asset retirement obligation
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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