Determine ending inventory of copper for this year

Assignment Help Financial Accounting

Reference no: EM133633896

Calculating Depletion, Depreciation, and Ending Inventory

Atlas Company purchased the rights to a copper mine for $5,400,000 on January 1. The mine is expected to provide 1,260,000 tons of copper. Atlas also purchased equipment on June 30 for $108,000 (residual value $9,000) that will be used for this mine and other projects. The equipment's estimated useful life is 6 years. During the year, the company extracted 90,000 tons of copper and sold 54,000 tons.

a. Calculate depletion for the year.
Annual depletion: $Answer

b. Calculate depreciation expense for the year assuming the company uses straight-line depreciation.
Note: Round your final answer to the nearest dollar.

Depreciation expense: $Answer

c. Determine ending inventory of copper for this year.

Reference no: EM133633896

Questions Cloud

What is the highest effective annual rate of interest : What is the highest effective annual rate of interest at which Hassan should borrow from the bank instead of using the dealer's 3.9% financing?

How do you calculate present value of equipment : Bob reviewed the lease agreement and recorded the lease as a finance lease. How do you calculate Present value of equipment and the future value

Prepare the journal entry to record the exchange : prepare the journal entry to record the exchange. (If no entry is required for a transaction/event, select "No journal entry required" in the first account

Describe the best places to complete research : Describe the best places to complete research and what types of resources you would want to access to find pertinent information for the diagnosis/health care.

Determine ending inventory of copper for this year : Calculate depreciation expense for the year assuming the company uses straight-line depreciation and Determine ending inventory of copper for this year

Prepare come up with a write up that captures key : Prepare come up with a write up that captures key insights and recommendations and Provide an overview of the case and explain why linking purpose to profit

How do you calculate present value of equipment : Bob reviewed the lease agreement and recorded the lease as a finance lease. How do you calculate Present value of equipment and the future value

Why is it increasing the share capital : Why is it increasing the share capital? I dont understand the second line of the journal entry

What troubling social conditions is prof hochschild : What "troubling social conditions" is Prof Hochschild discussing? Which of Best's "Grounds" strategies do you hear her use?

User Account

All Pages