The Consolidated Mining Company bought the Lowly Coal Mine for $11,600,000 with a residual value of $1,600,000. The company believes Lowly Mine will yield 200,000 tons of coal over the life ot O00 002e 6am69 26/1 qinenenhs9 ma98 sonoa the mine. THIS year, Lowly hasmiped 75,000 tons of coal, sdheled sg ginsqo annO 15 a.c00-0er o og optheA What is the RATE of depletion for the Lowly Coal Mine? 8 PTS 6EIAo led Tei opledlstigeo4 qo 1iert ho 3newolle fanstnr to 8onewollsyielea s eleg me9 sliw 000.82 aMoITAJUA A WOH2 TaUM UOY ep anno to yonewdia s 0e pits pnnerta eeol ot ttog viorT 000,2 bsy onled latigeiart of bebbs ed ot smoont teM ert to enerda a'nonthsq HOA3 isdWA eldot a the CALCULATIONS 4 PTS B) What amount of depletion will be recorded for this year? SHOW C) SHOW the required JOURNAL ENTRY to record the depletion. 5 PTS D) Calculate the BOOK VALUE to be shown on the Consolidated Mining Company Balance S after the effect of the journal entry in part (A) above. SHOW YOUR WORK to find Book Value. 6 E) What is the dollar effect on the current assets of Consolidated Mining Co.?1 pt. Increase by $ Decrease by $ NO EFFECT F) What is the dollar effect on the long term assets of Consolidated Mining Co. ? 1 pt. Increase by $ Decrease by $ NO EFFECT The Consolidated Mining Company bought the Lowly Coal Mine for $11,600,000 with a residual value of $1,600,000. The company believes Lowly Mine will yield 200,000 tons of coal over the life ot O00 002e 6am69 26/1 qinenenhs9 ma98 sonoa the mine. THIS year, Lowly hasmiped 75,000 tons of coal, sdheled sg ginsqo annO 15 a.c00-0er o og optheA What is the RATE of depletion for the Lowly Coal Mine? 8 PTS 6EIAo led Tei opledlstigeo4 qo 1iert ho 3newolle fanstnr to 8onewollsyielea s eleg me9 sliw 000.82 aMoITAJUA A WOH2 TaUM UOY ep anno to yonewdia s 0e pits pnnerta eeol ot ttog viorT 000,2 bsy onled latigeiart of bebbs ed ot smoont teM ert to enerda a'nonthsq HOA3 isdWA eldot a the CALCULATIONS 4 PTS B) What amount of depletion will be recorded for this year? SHOW C) SHOW the required JOURNAL ENTRY to record the depletion. 5 PTS D) Calculate the BOOK VALUE to be shown on the Consolidated Mining Company Balance S after the effect of the journal entry in part (A) above. SHOW YOUR WORK to find Book Value. 6 E) What is the dollar effect on the current assets of Consolidated Mining Co.?1 pt. Increase by $ Decrease by $ NO EFFECT F) What is the dollar effect on the long term assets of Consolidated Mining Co. ? 1 pt. Increase by $ Decrease by $ NO EFFECT
