Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

At the beginning of 2017, Wildhorse Company acquired a mine for $2, 053, 400. Of this amount, $116,000 was ascribed to the land value and

image text in transcribed

At the beginning of 2017, Wildhorse Company acquired a mine for $2, 053, 400. Of this amount, $116,000 was ascribed to the land value and the remaining portion to the minerals in the mine. Surveys conducted by geologists have indicated that approximately 6, 960,000 tons of the one appear to be in the mine. Wildhorse incurred $58,000 of development costs associated with this mine prior to any extraction of minerals. It also determined that the fair value of its obligation to prepare the land for an alternative use when all of the mineral has been removed was $23,000. During 2017, 1, 390,000 units of ore were extracted and 1, 160,000 of these units were sold. Compute the following. The total amount of depletion for 2017. (Round per unit answer to 2 decimal places, e.g. 0.45 for computational purpose and final answer to 0 decimal places, e.g. 45, 892.) Depletion for 2017 The amount that is charged as an expense for 2017 for the cost of the minerals sold during 2017.(Round per unit answer to 2 decimal places, e.g. 0.45 for computational purpose and final answer to o decimal places, e.g. 45, 892.) Amount that is charged as an expense for 2017

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

2. What are the components of IT infrastructure?

Answered: 1 week ago