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In 2 0 2 4 , the William Jesse Company purchased land containing a mineral mine for $ 1 , 6 0 0 , 0
In the William Jesse Company purchased land containing a mineral mine for $ Additional costs of $ were incurred to develop the mine. Geologists estimated that tons of ore would be extracted. After the ore is removed, the land. will have a resale value of $
To aid in the extraction, William Jesse built various structures and small storage buildings on the site at a cost of $ These structures have a useful life of years. The structures cannot be moved after the ore has been removed and will be left at the site. In addition, new equipment costing $ was purchased and installed at the site. William Jesse does not plan to move the equipment to another site, but estimates that it can be sold at auction for $ after the mining project is completed.
In tons of ore were extracted and sold. In the estimate of total tons of ore in the mine was revised from to During tons were extracted.
Required:
Compute depletion and depreciation of the mine and the mining facilities and equipment for and William Jesse uses the unitsofproduction method to determine depreciation on mining facilities and equipment.
Compute the book value of the mineral mine, structures, and equipment as of December
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Compute depletion and depreciation of the mine and the mining facilities and equipment for and William Jesse uses the unitsofproduction method to determine depreciation on mining facilities and equipment.
Note: Do not round intermediate calculations.
tableDepletion$$Depreciation for Structures,$$Depreciation for Equipment,$$
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