18 Dayton Mining Company pinched and containing estimated 13 millions of at a cost of $8,000,000 Without the land, the ove is eated so be wors 800,000. The compry expects to open the mone 10 years hailings sting $500,000 are erected on the site and we expected to for 30 years. Equipment coming 1350,000 with an estimated life of yours is installed The helings have and the equipment pees residual value. During the first year of operations, the mining company mined and wild 2 millio Required (a) Compute the depletion sharge per m (Marks) (h) Compute the depletion for the first year (5 Marks) (c) Compute the appropriate first year's depreciation expense for the buildings. (5 Marks) (d) Compute the appropriate first year's depreciation expense for the equipment. 15 Marks) (e) Prepare journal entries to recond depletion and depreciation expense for the year (5) Total (25) For the toob press ALTP 10 C) or ALTFN-F10 M TTT 3 IT EE var of S QUESTION 16. Dayton Mining Company purchased land containing an estimated 15 million tons of ore at a cost of $6,000,000. Without the land, the ore is estimated to be worth $800,000. The company expects to operate the mine for 10 years. Buildings costing $500,000 are erected on the site and are expected to last for 30 years. Equipment costing $350,000 with an estimated life of 5 years is installed. The buildings have a residual value of $20,000 and the equipment possess no residual value. During the first year of operations, the mining company mined and sold 2 million tons of ore. Required: (a) Compute the depletion charge per ton. (5 Marks) (b) Compute the depletion for the first year. (5 Marks) (c) Compute the appropriate first year's depreciation expense for the buildings. (5 Marks) (d) Compute the appropriate first year's depreciation expense for the equipment. (5 Marks) (e) Prepare journal entries to record depletion and depreciation expense for the year (5) Total (25) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). TTT Arial 3 (12pt) TEE A Fave and Submit to save and submit. Click Save All Answers to save all answers. Save