Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Assets Equipment Patent Coal Mine Purchase date 1 January 1 January 2020 1 August 2019 2020 Purchase cost 375.000 70.000 1.450.000 Residual value 25.000 0
Assets Equipment Patent Coal Mine Purchase date 1 January 1 January 2020 1 August 2019 2020 Purchase cost 375.000 70.000 1.450.000 Residual value 25.000 0 0 5 years 4 years Estimated useful life 250.000 tons Straight-Line Depreciation Method Double Declining Unit of activity Additional information Actual extraction and sales of coal: 2020: 47.000 tons 2021: 88.000 tons 2022: 100.000 tons Instructions: a. Compute depreciation journal on 31 December 2021. b. Compute amortization journal on 31 December 2020 and disposal of journal at 31 december 2021 (no cash received by PA Corp). C. Compute depletion journal of natural resources on 31 December 2021
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started