Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ch10-9 Please help me figure out the problem below QS 10-13 (Algo) Natural resources and depletion LO P3 Perez Company acquires an ore mine at
ch10-9 Please help me figure out the problem below
QS 10-13 (Algo) Natural resources and depletion LO P3 Perez Company acquires an ore mine at a cost of $2,800,000. It incurs additional costs of $784,000 to access the mine, which is estimated to hold 2,000,000 tons of ore. 230,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $400,000. Calculate the depletion expense from the information given. 1. & 2. Prepare the entry to record the cost of the ore mine and year-end adjusting entry. Answer is not complete. Complete this question by entering your answers in the tabs below. Depletion Expense General Journal Calculate the depletion expense from the information given. (Round "Depletion per unit" to 3 decimal places) $ 3,504,000 Cont Salvage Amount subject to depletion Total units of capacity Depletion per unit Units extracted and sold in period 40.000 300, 100 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