On January 1, 20X1, Como Company purchased 45% of the outstanding common shares of the Lite Company for $200,000. The net assets
1 answer:
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Answer:
Santa Fe's cost depletion expense for the current year is $90,000
correct option is b) $90,000
Explanation:
given data
Santa Fe paid = $300,000
Santa Fe recover = 5,000 pounds
Santa Fe extracted = 1,500 pounds
sold = $250,000
to find out
Santa Fe's cost depletion expense for the current year
solution
we get Santa Fe's cost depletion expense for the current year will be here as
cost depletion expense = × extracted .......1
put here value we get
cost depletion expense = × 1,500
cost depletion expense = 60 × 1,500
cost depletion expense = 90,000
so Santa Fe's cost depletion expense for the current year is $90,000
correct option is b) $90,000