Question
Hello- I am having trouble completing the following questions from a (non-graded) chapter assignment. Any help you could provide with solving the following problems below
Hello- I am having trouble completing the following questions from a (non-graded) chapter assignment. Any help you could provide with solving the following problems below would assist with my understanding. Thank you so much.
Frederick Mining Company owns a large parcel of land which costs $900,000.It is estimated to contain 1,600,000 tons of recoverable ore.It is estimated that the recovery of the ore will take 10 years and that after the ore is fully depleted the land will be sold for a market value of $150,000.In 2018, Frederick extracted and sold 115,000 tons of ore.What is the amount of depletion that should be recorded?Round total the nearest whole dollar.
On January 2, 2019, Adelphi Company purchased a patent for $160,000 plus $10,000 in legal fees. On that date, the patent had a remaining legal life of 13 years. Adelphi Company expects to use the patent for 8 years after which time it will be worthless.How much is the annual amortization expense for 2019?Round to nearest whole dollar.
Annapolis Company was recently sold for $480,000.Annapolis had assets & liabilities appraised at the time of the sale in the amounts of:
Item
Amount
Accounts Receivable assumed by buyer
$120,000
Inventory
$290,000
Property, Plant & Equipment (net)
$505,000
Notes Payable assumed by buyer
$705,000
Using this information, how much should be recorded as Goodwill for this transaction?
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