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Thats a great question, Im assuimg go with the information in the blue Flannery Company engages in the exploration and development of many types of
Thats a great question, Im assuimg go with the information in the blue
Flannery Company engages in the exploration and development of many types of natural resources. In the last two years, the company has engaged in the following activities Jan. 1, 2018 Purchased for $1,770,000 a silver mine estimated to contain 116,000 tons of silver ore. July 1, 2018 Purchased for $1,920,000 a tract of timber estimated to yield 1,930,000 board feet of lumber and the residual value of the land was estimated at $142,000. Feb. 1, 2019 Purchased for $2,910,000 a gold wine estimated to yield 95,000 tons of gold veined ore. Aug. 1, 2019 Purchased oil reserves for $1,379,000. The reserves were estimated to contain 247,000 barrels of oil, of which 12,800 would be unprofitable to pump. Required (For all requirements, Round "per" values to 2 decimal places and final answers to the nearest whole dollar amount.) a. Determine the amount of depletion expense that would be recognized on the 2018 income statement for each of the two reserves assuming 14,600 tons of silver were mined, and 570,000 board feet of lumber were cut b. Determine the amount of depletion expense that would be recognized on the 2019 income statement for each of the four reserves assuming 22,000 tons of silver are mined. 380,000 board feet of lumber ore cut, 4 700 toms on gold ore is mined, and 94.000 barrels of oil are extracted c. Prepare the portion of the December 31, 2019, balance sheet that reports natural resources Flomework Assignment Swed Complete this question by entering your answers in the tabs below. Req A and B Reqc Determine the amount of depletion expense that would be recognized on the 2018 income statement for each of the two reserves, assuming 14,000 tons of silver were mined, and 500,000 board feet of lumber were cut. Also determine the amount of depletion expense that would be recognized on the 2019 income statement for each of the four reserves, assuming 20,000 tons of silver are mined, 300,000 board feet of lumber are cut, 4,000 toms on gold ore is mined, and 50,000 barrels of oil are extracted Show less Depletion Expense - 2018 Silver Mine Timber b Depletion Expeme. 2019 Silver Mine Timber Gold Mine Os Reserves REA Reqc > repare te portion of the December 31, 2019, balance sheet that reports natural resources Complete this question by entering your answers in the tabs below. Reg A and B Reqc Prepare the portion of the December 31, 2019, balance sheet that reports natural resources. Natural Resources Silver Mine Timber Gold Mine Ol Reserves Total Natural Resources Land Total 0 $ 0 Step by Step Solution
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