Computing its annual deloetion expense for the minerals

Assignment Help Accounting Basics
Reference no: EM13124632

Kent Oil, a small texas oil company, hold huge reserves of oil and gas assets. Assume that at teh end of 2008m Kent's cost of mineral assets totaled approximately $18 milion m representilng 2.4 milion barrels of oil and gas reserves in the ground.

1. Which depletion method does Kent use to compute its annual deloetion expense for the minerals remove from the ground?

2. Suppose Kent removed 0.8 milion barrels of oil during 2009. Record Kent's depletion expense for 2009.

Could you answer the question on the New MS Excel file?

Reference no: EM13124632

Questions Cloud

Problem related to marginal tax rate : Julio, age 50, is a U.S. citizen who has a 28% marginal tax rate. He has operated the A&B Automotive Parts Company for a number of years as a C corporation.
How you would play the game : Magine you're teaching in an empty classroom. There are only four walls, your students and yourself (there is no white/blackboard either).
Find confidence interval for the true proportion of voters : A survey of 608 adults showed that 401 of them approved of the way city government was being run. Find a 99% confidence interval for the true proportion of voters who approve the way city government is being run.
What is the nullity of the transformation of tsuba : What is the nullity of the transformation of TsubA? What is the rank of the Transformation TsubA.
Computing its annual deloetion expense for the minerals : Which depletion method does Kent use to compute its annual deloetion expense for the minerals remove from the ground?
Write a sentence that correctly interprets interval : Calculate the 95% confidence interval for the population proportion of patients who are successfully treated. (c) Write a sentence that correctly interprets this interval.
Discuss lady macbeth''s role in the play macbeth. : Discuss Lady Macbeth's role in the play Macbeth.
Calculate the total dollar amount of discount : Calculate the total dollar amount of discount or premium amortization during the first year (5/1/04 through 4/30/05) these bonds were outstanding. (Show computations and round to the nearest dollar.)
Create the appropriate adjusting entry for depreciation : On January 1, 2009, the estimate of useful life was changed to a total of 12 years, and the estimate of residual value was changed to $20,000. Create the appropriate adjusting entry for depreciation in 2009 to reflect the revised estimate.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Reallocation of fixed costs

If a division is reporting losses, does that necessarily mean that it must be closed? Was the reallocation of the fixed costs across divisions unethical?

  Asset-liability approach-recording deferred income taxes

Indicate whether each of the following independent situations should be treated as a temporary difference or as a permanent difference and explain why.

  Variable cost assessment

The MedView brochure said, "Only 45 scans per month to cover the monthly equipment rental of $18000." *The footnote at the bottom of the brochure read: *"Assumes a reimbursable fee of $475 per scan."

  Ethical dilemma in business

Describe in detail an ethical dilemma in business that you or a coworker experienced and how it was resolved.

  Standard by using traditional costing

Overhead applied to Standard using traditional costing using direct labor hours is

  Production for the period for conversion costs

A process with no beginning work in process, completed and transferred out 14,000 units during a period and had 7,000 units in the ending work in process that were 50% complete. How much is equivalent units of production for the period for convers..

  Conversion value of convertible

The conversion price of CRX's convertible ($1,000 par) subordinated debentures is $40 and the present market price of CRX common stock is $48.

  Calculate the amount of estate tax

Roland had a taxable estate of $5.5 million when he died this year. (Reference the tax rate schedule in Exhibit 25-1 and the Unified Credit schedule in Exhibit 25-5 to answer this problem. Omit the "tiny_mce_markerquot; sign in your response).

  Identify features common to gift tax formula and estate tax

Identify the features common to the gift tax formula and the estate tax formula. What is the lifetime gift tax exemption in tax year 2012? What is that exemption amount in 2013?

  Keeping a manual accounting system

Your friend, Wendy Geiger, owns a small retail store that sells canies and nuts. Geiger acquires her goods from a few select vendors. She generally makes purchase orders by phone and on credit. Sales are primarily for cash. Geiger keeps her own ma..

  Cash-basis and accrual-basis net income

Conan Industries also paid $71,411 for expenses in 2010. Of the amount paid, $33,331 was for expenses incurred on account in 2009. In addition, Conan incurred $42,259 of expenses in 2010, which will not be paid until 2011.

  Excess amortization expense

How much goodwill will be reported in the consolidation financial statements on December 31, 2012, at the end of Allen's fiscal year? What is the excess amortization expense for the period ending December 31, 2012?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd