Question
On 1-1 2021, Mahoney Mining Corp. bought land for 420,000 The residual value of this land is estimated to be 50,000 Development costs related to
| On 1-1 2021, Mahoney Mining Corp. bought land for | 420,000 |
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| The residual value of this land is estimated to be | 50,000 |
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| Development costs related to the project | 140,000 |
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| Estimated cost of asset retirement obligation | 20,000 |
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| Estimated total tons of ore | 3,000,000 |
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| Units of ore extracted during the year | 250,000 |
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| Units of ore sold during the year | 225,000 |
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| Calculate the depletion base and rate and prepare the journal entry for the year. | ||||
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Accounting For Managers Interpreting Accounting Information For Decision Making
Authors: Paul M. Collier
3rd Edition
0470777648, 9780470777640
