At the beginning of 2020, Vaughn Company acquired a mine for $1,965,400. Of this amount, $115,000 was ascribed to the land value and the remaining portion to the minerals in the mine. Surveys conducted by geologists have indicated that approximately 11,010,000 units of ore appear to be in the mine. Vaughn incurred $195,500 of development costs associated with this mine prior to any extraction of minerals. It also determined that the fair value of its obligation to prepare the land for an alternative use when all of the mineral has been removed was $46,000. During 2020, 2,433,000 units of ore were extracted and 2,081,000 of these units were sold.
Compute the total amount of depletion for 2020.
Solved
Show answers
More tips
- S Society and Politics What Would Brezhnev Do If He Were Alive Today?...
- S Style and Beauty Choosing a Hair Straightener: Specific Criteria to Consider...
- F Family and Home How to Remove Tar Stains: Tips and Recommendations from Experts...
- F Family and Home How to Remove Fading from Clothes: Tips and Tricks...
- S Sport How to Do a Jumping Split...
- H Health and Medicine How Did Inna Lose Weight on Dom 2?...
- F Family and Home How to Properly Fold Napkins in a Napkin Holder?...
- F Food and Cooking How to Set Up Ventrilo - The Ultimate Guide...
- S Science and Technology How to Make a Homemade Smoker: The Ultimate Guide...
- A Auto and Moto Battle for the Relocation of The Cherkizovsky Market: Who Won?...
Answers on questions: Business
- B Business Job Shadows typically last six weeks half day one to three days one semester...
- B Business Suppose Mexico is a major export market for your U.S.-based company and the Mexican peso appreciates drastically against the U.S. dollar. This means:. a. your domestic...
- B Business For each of the following characteristics, say whether it describes a perfectly competitive firm, a monopolistically competitive firm, both, or neither. a. sells...
- B Business Gortland has long been narrowly self-sufficient in both grain and meat. However, as per capita income in Gortland has risen toward the world average, per capita consumption...
- B Business For a small country called Boxland, the equation of the Domestic demand curve for cardboard is QD=200-2p, where QD represents the domestic quantity of cardboard demanded,...
- B Business Emma s building is destroyed on November 28, 2018. The adjusted basis is $645,000. Emma receives $680,000 from the insurance company on January 2, 2019. She is a...
- B Business A production department s output for the most recent month consisted of 12,000 units completed and transferred to the next stage of production and 12,000 units in...
- B Business Martha works as a project manager at a bank. due to certain changes in external factors, martha needs to make a few alterations in the tactical goals of her project....
- B Business Suppose that an economy is growing at its steady state rate of 4% per year when a natural disaster destroys one-quarter of its capital stock, leaving all other factors...
- B Business Your gym offers two classes at the same time: weightlifting and yoga. both classes are included in your membership and have space available. your friend tells you...
Ответ:
$462,270.00
Explanation:
The first task is to determine the depletion rate per unit of ore extracted from the mine.
depletion rate=total cost the mine/total units of ore extract
total cost of mine=acquisition cost-land value+development costs+removal cost
total cost of mine=$1,965,400-$115,000+$195,500+$46,000=$2,091,900.00
total units of ore extract is 11,010,000 units
depletion rate= 2,091,900.00/11,010,000=$0.19 per unit of ore
depletion amount in 2020=depletion rate*ore extracted in 2020=2,433,000*$0.19 =$462,270.00
Ответ:
$408,903
Explanation:
Depletion is an estimated cost of a natural resource that is extracted. This resource is expensed as the extraction is made.
As per given data
Total Payment = $1,965,400
Land Value = $115,000
Value of Rights = $1,965,400 - $115,000 = $1,850,400
Estimated resources = 11,010,000 units
Resources extracted in the period = 2,433,000 units
Depletion expense is based on ratio of the amount of extraction in period to the total expected resource.
Depletion Expense = $1,850,400 x 2,433,000 / 11,010,000 units = $408,903
Ответ:
This is what i have.
#include
Explanation: