User Account

All Pages

How much depletion is recognized in statement of financial

Assignment Help Financial Accounting
Reference no: EM132736157

In 2019, ABC Mining Corp. acquired the right to use 1,000 acres of land to mine for gold. The lease cost is Php 200,000,000, and the related exploration costs on the property amounted to Php 40,000,000. It is the policy of ABC Mining Corp. to capitalize all costs of exploration and evaluation of mineral resources. Intangible development costs for drilling, tunnels, shafts, and wells incurred before opening the mine amounted to Php 340,00,000. At the end of the mine's economic useful life, ABC Mining Corp. is required by legislation to restore the site. Estimated restoration costs have a fair value of Php 20,000,000. ABC Mining Corp. estimates that the mine will provide approximately 100,000,000 ounces of gold. Actual ounce of gold mined in 2020 totaled 300,000 ounces.

Problem 1: How much is the depletion charge in 2020?

Problem 2: Assuming that of the 300,000 ounces of gold extracted in 2020, 280,000 ounces were sold and 20,000 ounces remained in inventory. How much depletion is recognized in the (a) statement of financial position and (b) statement of profit or loss and other comprehensive income?

Reference no: EM132736157

Questions Cloud

How much is the depletion charge : How much is the depletion charge in 2020? In 2019, ABC Mining Corp. acquired the right to use 1,000 acres of land to mine for gold.
Important aspect of organizational behaviour : What is the most important aspect of Organizational Behaviour? How can it be utilized to help motivating yourself and others? What can I expect to gain
How much is the annual depreciation for the asset : Norie Company leased an asset on finance. Depreciation for the asset is computed using straight line method. How much is the annual depreciation for the asset?
Maintaining consistent pricing retailers reduce : By maintaining consistent pricing retailers can reduce the ill effects of the Bull Whip Effect. Explain how.
How much depletion is recognized in statement of financial : How much depletion is recognized in the (a) statement of financial position and (b) statement of profit or loss and other comprehensive income?
Formulate an ip model for problem : Each tow bar requires 3.2 hours on machine 1 and 2 hours on machine 2. Each stabilizer bar requires 2.4 hours on machine 1 and 3 hours on machine 2.
At what amount should the notes payable be shown : On May 1, 2019, the Rounger Corporation purchased two new cars from Honda Corporation. The terms of the sale called for Rounger to pay P3,924,000 on April 30.
Find what amount should recorded as depreciation expense : What amount should be recorded as depreciation expense on 2020? London Mining Company estimates a recoverable output of 500,000 tons from the mine.
Calculate the labor productivity for pccorp : Calculate the labor productivity for PCCorp with respect to units shipped.

Reviews

Write a Review

Financial Accounting Questions & Answers

  How to record the transactions in the appropriate journals

How to Record the transactions in the appropriate journals? $2,500 was paid to the solicitors for the formation of the company on 2 June 2015.

  Calculate price should offer to get lowest possible purchase

Calculate the price should offer to get the lowest possible purchase price to maximize the profit. NB: Any calculation should be rounded off to nearest rupee

  Discuss when delta airlines should recognize the revenue

Discuss when delta airlines should recognize the revenue from tickets sales to match revenues and expense. Explain in detail with an example.

  Which capital budgeting technique preferred and why

Discuss techniques ans if you are an investor justify which capital budgeting technique you preferred and why ? provide logical arguments

  What is the monthly payment if the customer can apply

The required down payment is $1,410. What is the monthly payment if the customer can apply for a 3-year auto loan with a promotional financing rate at 2.99%?

  Amount of under or overapplied manufacturing overhead

For Eckstein Company, the predetermined overhead rate is 137% of direct labor cost. During the month, Eckstein incurred $104,000 of factory labor costs, of which $85,200 is direct labor and $18,800 is indirect labor. Actual overhead incurred was $121..

  Entry to record sale of merchandise on account includes

Using a perpetual inventory system, the entry to record the sale of merchandise on account includes a. The primary difference between a periodic and perpetual inventory system is that a. A control account is used to record the details of the individu..

  How does it function in the cost of capital

Think about and give a brief answer to: What is cost of equity and how does it function in the cost of capital? To increase a firm’s value, results should show your WACC is moving in which direction? What are those skills?

  Concept of overhead in terms of flexible budgeting

Discuss the concept of overhead in terms of flexible budgeting, overhead cost variances and how each relates to a manager's ability to control various aspects of their operation. Include your discussion each of the possible overhead variances and why..

  The purchases detailed above laira brand

On 1 May 2017 Laira Brand owed Mudgee Ltd £2,100.47. Other than the purchases detailed above Laira Brand made credit purchases (including VAT) of £680.23 from Mudgee Ltd on 15 May. On 21 May Mudgee Ltd received a cheque for £2,500 from Laira Brand..

  Determine the gross profit for april and ending inventory

Determine the gross profit for April and ending inventory on April 30 using the first-in, first-out (FIFO); last-in, first-out (LIFO)

  Transaction price for multiple performance obligations

Transaction price for multiple performance obligations should be allocated

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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