Question 2 of 3 ( ) 133.3 10n \%: 11mn. The parts of this questian must be completed in order. This part will be available when you complete the part above chap. 10 Prob. Question 2 of 3 \& -133.3 E Bisue Mining Company has purchased a tract of mineral land for 51,296,000. It is estimated thut this tract will yield 172,800 tons of ore with sufficient mineral content to make ciningtand processing profitable, It is further estimated thot 8.640 tors of ore will be inined the first and last year and 17.280 tom every year in between (Assurve 11 vears of mining copratiers) The land will fove a salvage value is $4300 The cencany builds necessary atructures and sheds on the site at a cost of 551.840 if is estimated that these structures can serve is vears 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 baildings elsewhere. Mining machinery instalied at the mine was purchsicd secondhund at acost of 586400 . This machinery cost the former owner $216,000 and was 501 depreclated wheri purchased, Elue Miningestinates that about half of this machinery will still be useful when the preseat mineral resources howe been echausted, but thut dhmant ling and removal costs will int about offiet its value at that time. The company does not intend to use the machinery elsewhere. The remaining machinery will lastantil about coe- laif the present estimated minerat ore has beten removed and will then be wortiless. cost h to be allocated eeisly between these two classer ot nuchinery (a) Aschief accountart for the compary you are to prepare a scheble showing estimated depletion and deareciation costs for eich wear of the expected life of the mine (flound per init answers to 2 decimst pldoes, es. 0.45 for computationd purposer and final anwers ty o drcimul ploperey 45.892 ) Question 2 of 3 ( ) 133.3 10n \%: 11mn. The parts of this questian must be completed in order. This part will be available when you complete the part above chap. 10 Prob. Question 2 of 3 \& -133.3 E Bisue Mining Company has purchased a tract of mineral land for 51,296,000. It is estimated thut this tract will yield 172,800 tons of ore with sufficient mineral content to make ciningtand processing profitable, It is further estimated thot 8.640 tors of ore will be inined the first and last year and 17.280 tom every year in between (Assurve 11 vears of mining copratiers) The land will fove a salvage value is $4300 The cencany builds necessary atructures and sheds on the site at a cost of 551.840 if is estimated that these structures can serve is vears 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 baildings elsewhere. Mining machinery instalied at the mine was purchsicd secondhund at acost of 586400 . This machinery cost the former owner $216,000 and was 501 depreclated wheri purchased, Elue Miningestinates that about half of this machinery will still be useful when the preseat mineral resources howe been echausted, but thut dhmant ling and removal costs will int about offiet its value at that time. The company does not intend to use the machinery elsewhere. The remaining machinery will lastantil about coe- laif the present estimated minerat ore has beten removed and will then be wortiless. cost h to be allocated eeisly between these two classer ot nuchinery (a) Aschief accountart for the compary you are to prepare a scheble showing estimated depletion and deareciation costs for eich wear of the expected life of the mine (flound per init answers to 2 decimst pldoes, es. 0.45 for computationd purposer and final anwers ty o drcimul ploperey 45.892 )
