Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

hEquity - Buil. Homework Freeport-McMoran Copper & Gold Inc, headquartered in Phoenix, Arizona, is a leading international mining company of copper, gold, and molybdenum. Its

image text in transcribed
hEquity - Buil. Homework Freeport-McMoran Copper & Gold Inc, headquartered in Phoenix, Arizona, is a leading international mining company of copper, gold, and molybdenum. Its revenues were over $16 billion with net income of nearly $2 billion in a recent year. Assume that in February 2020, Freeport-McMoran paid $800,000 for a mineral deposit in Indonesia. During March, it spent $70,000 in preparing the deposit for exploitation. It was estimated that 1.000.000 total cubic yards could be extracted economically. During 2020, 60,000 cubic yards were extracted. During January 2021, the company spent another $6,000 for additional developmental work that increased the estimated productive capacity of the mineral deposit. Required: 1. Compute the acquisition cost of the deposit in 2020 Acquisition cost 2. Compute depletion for 2020. (Do not round intermediate calculations.) Depletion 3. Compute the net book value of the deposit after payment of the January 2021 developmental costs (Do not round intermediate calculations.)

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

Computerized Accounting With Quickbooks 2018

Authors: James B. Rosa, Kathleen Villani

1st Edition

0763882674, 9780763882679

More Books

Students also viewed these Accounting questions