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please fix the answers in red Question 2 Whispering Mining Company has purchased a tract of mineral land for $1,098,000. It is estimated that this

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Question 2 Whispering Mining Company has purchased a tract of mineral land for $1,098,000. It is estimated that this tract will yield 146,400 tons of ore with sufficient mineral content to make mining and processing profitable. It is further estimated that 7,320 tons of ore will be mined the first and last year and 14,640 tons every year in between. (Assume 11 years of mining operations. The land will have a salvage value of $36,600. The company builds necessary structures and sheds on the site at a cost of $43,920. It is estimated that these structures can serve 15 years but, because they must be dismantled if they are to be moved, they have no salvage value. The company does not intend to use the buildings elsewhere. Mining machinery installed at the mine was purchased secondhand at a cost of $73,200. This machinery cost the former owner $183,000 and was 50% depreciated when purchased. Whispering Mining estimates that about half of this machinery will still be useful when the present mineral resources have been exhausted, but that dismantling and removal costs will just about offset its value at that time. The company does not intend to use the machinery elsewhere. The remaining machinery will last until about one-half the present estimated mineral ore has been removed and will then be worthless. Cost is to be allocated equally between these two classes of machinery. Your answer is partially correct. Try again. As chief accountant for the company, you are to prepare a schedule showing estimated depletion and depreciation costs for each year of the expected life of the mine. (Round per unit answers to 2 decimal places, e.g. 0.45 for computational purposes and final answers to o decimal places, e.g. 45,892.) Estimated depletion cost Year Depletion 53070 106140 106140 106140 106140 106140 106140 As chief accountant for the company, you are to prepare a schedule showing estimated depletion and depreciation costs for each year of the expected life of the mine. (Round per unit answers to 2 decimal places, e.g. 0.45 for computational purposes and final answers to o decimal places, e.g. 45,892.) Estimated depletion cost Year Depletion 1st Yr. 53070 106140 106140 106140 106140 106140 106140 106140 106140 106140 53070 Estimated depreciation cost Machinery (1/2) Building Machinery (1/2) 3993 3327 6655 and ye. 3327 6655 1993 Estimated depreciation cost Machinery (1/2) Year Building Machinery (1/2) 1st Yr. 3993 3327 6655 2nd Yr 3993 3327 6655 3rd Yr. 3993 3327 6655 3993 3327 6655 3993 3327 6655 3993 3327 3327 3993 3327 3993 3327 3993 3327 10th yr. 3993 3327 11th 3993 3327 x Your answer is incorrect. Try again. Also compute the depreciation and depletion for the first year assuming actual production of 6,100 tons. Nothing occurred during the year to cause the company engineers to change their estimates of either the mineral resources or the life of the structures and equipment. (Round per unit answers to 2 decimal places, e.g. 0.45 for computational purposes and final answers to decimal places, e.g. 45,892.) Depletion Depreciation

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