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Vlad [161]
3 years ago
11

Cameron Corp. purchased a mine on January​ 1, 2018, for​$530,000, which is estimated to contain​ 35,000 tons of iron ore. There

is no residual value. The business extracted and sold​ 7,500 tons of ore in 2018 and​ 10,800 tons of ore in 2019. What is the depletion expense for​ 2019? (Round any intermediate calculations to two decimal​ places, and your final answer to the nearest​dollar.)
A.

​$277,062

B.

​$252,838

C.

​$113,550

D.

​$163,512
Business
1 answer:
balu736 [363]3 years ago
7 0

Answer:

D.$163,512

Explanation:

Depletion expense is a charge against profits for the use of natural resources.

Depletion rate = cost to purchase resource/ number of units = $530,000/ 35,000 tons = $15.14 per ton

Depletion expense for 2019 = Depletion rate * number of units extracted and sold in 2019 = $15.14 * 10,800 =  $163,512

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melomori [17]

Answer:

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Explanation:

Depreciation/amortization is systematic allocation of cost of asset over its useful life. In this case asset cost is not given so we assume that PV of lease payment is equal to market value (660,000 dollars) of asset.

In case of leased asset the useful life taken for calculation of depreciation is lower of 1) Useful life 2) Lease term as per applicable accounting standards.

So we have taken 5 years to charge depreciation on Straight line method.

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7 0
3 years ago
Granite Company purchased a machine costing $128,000, terms 3/10, n/30. The machine was shipped FOB shipping point and freight c
Alborosie

Answer:

machine enter the accounting at <em> 138,210 dollars</em>

Explanation:

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shipping cost:                      2,800

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total incurred cost

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<em />

<em>The damge are expenses for the period as they arent a necessary cost to utilize the machine.</em>

<em>The company used the discount price over the list price as this is the atual cost incurred</em>

8 0
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Tamiku [17]
The correcto answer for this question is the letter c
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3 years ago
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tia_tia [17]

Answer:

Something to exchange is missing

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5 0
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