1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Agata [3.3K]
2 years ago
11

Crane Corporation acquires a coal mine at a cost of $404,000. Intangible development costs total $101,000. After extraction has

occurred, Crane must restore the property (estimated fair value of the obligation is $80,800), after which it can be sold for $161,600. Crane estimates that 4,040 tons of coal can be extracted. If 707 tons are extracted the first year, prepare the journal entry to record depletion.
Business
1 answer:
Svet_ta [14]2 years ago
8 0

Answer:

The journal entry to record depletion is  :

Debit : Depletion Expense $74,235

Credit : Accumulated Depletion $74,235

Explanation:

<em>Depletion Expense = Depletion rate × units extracted during the year</em>

where,

<em>Depletion rate = (Cost - Salvage Value) ÷ Estimated total units</em>

Therefore,

Depletion rate = ($404,000 + $101,000 + $80,800 - $161,600) ÷ 4,040 tons

                        = $ 105 per ton

Therefore,

Depletion Expense = $ 105 per ton × 707 tons

                                = $74,235

<u>Journal Entry :</u>

Debit : Depletion Expense $74,235

Credit : Accumulated Depletion $74,235

You might be interested in
According to a book by a Harvard Business School professor, some organizational cultures simply cannot meet the challenges posed
vekshin1

Answer:

A) Adaptability

Explanation:

The company could not adapt to the current trends in the market. organizational adaptability is concerned with how firms could quickly adjust their business processes to changes that enhances their growth and make give them the ability to compete with rivals.

Many advantages are embedded in adjusting to the trend in the market, one of which is:

1. They value their employees

2. They have a well defined goals

3. They become more creative

4 0
3 years ago
Read 2 more answers
Mary traded furniture used in her business to a furniture dealer for some new furniture. Mary originally purchased the furniture
likoan [24]

Answer:

$24,000

Explanation:

From the time an asset is acquired until the time it is sold, an asset experiences a number of events which causes an increase or decrease of its total value. Th adjusted basis of a given asset, takes the base price of an asset and adjusts it for changes in value reflecting enhancements and or depreciation. For instance, a given asset purchased for $100, depreciates by $10 and has an improvement of $60 would have an adjusted basis of $100 - $10 + $60 = $150.

Now when Mary bought her furniture, the adjusted basis was $20,000. At the time of exchange, the fair market value of the furniture is $4,000 whereas Mary also gave $4,000 to the dealer in the transaction. This $4,000 changes the value ans is added to the previous adjusted basis of $20,000.

Mary's adjusted basis in the new furniture after the exchange is:

= $4,000 + $20,000

= $24,000

8 0
3 years ago
I wanna know about debit and credit full explanation ​
BigorU [14]

Answer:

Explanation:

A debit is an entry made in an account. It either increases an asset or expense account or decreases equity, liability, or revenue accounts.

A credit is an entry  alsom made in an account. It either increases equity, liability, or revenue accounts or decreases an asset or expense account.

7 0
2 years ago
Read 2 more answers
What are the paper bills and coins that a country actually circulates called?
AnnZ [28]
Apaper bills and coins circulated in a country are called CURRENCY. Please remember that currency is <span>a system of money in general use in a particular country. I hope this is useful. </span>
7 0
3 years ago
Read 2 more answers
a ___ is an organization that is formed when a person or group of persons uses resources to produce a good or service that meets
8_murik_8 [283]

Answer:

If im right,

Explanation:

It should be business , but if i'm wrong inform me and ill get on it again :D

6 0
3 years ago
Other questions:
  • On August 1, 1958, first-class postage for a 1-ounce envelope was 4 cents. On August 1, 2007, a first-class stamp for the same e
    6·1 answer
  • If a taxpayer does not have enough taxes withdrawn from her paychecks throughout the year to equal the total tax she is required
    9·2 answers
  • What is the most popular ownership structure within the u.S.?
    14·1 answer
  • The December 31, 2021, adjusted trial balance for Fightin' Blue Hens Corporation is presented below. Accounts Debit Credit Cash
    13·1 answer
  • Why do you earn more money using compound interest than you would using simple interest?
    5·1 answer
  • Earleton Manufacturing Company has $2 billion in sales and $600,000,000 in fixed assets. Currently, the company's fixed assets a
    10·1 answer
  • What is Baruch Shemtov's product, and how did he begin creating it?
    12·1 answer
  • The following information pertains to Eagle Co.'s Year 5 sales: Cash Sales Gross $ 80,000 Returns and allowances 4,000 Credit sa
    7·1 answer
  • Thomas Brothers is expected to pay a $0 50 per share dividend at the end of the year (i.s., D1=$0.50). The dividend is expected
    7·1 answer
  • Environmental sustainability concerns have declined steadily over the past three decades. True False
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!