Prepare the journal entry to record depletion

Reference no: EM13764095

Everly Corporation acquires a coal mine at a cost of $400,000. Intangible development costs total $100,000. After extraction has occurred, Everly must restore the property (estimated fair value of the obli- gation is $80,000), after which it can be sold for $160,000. Everly estimates that 4,000 tons of coal can be extracted. If 700 tons are extracted the first year, prepare the journal entry to record depletion

Reference no: EM13764095

Questions Cloud

Evaluate each argument of the given scenarios : Evaluate each argument of the given scenarios using the 4-step process described regarding soundness of reasoning. Explain your assessment and add alternative argumentation where necessary.

Definition of terrorism : Brief sketches of what were termed by some observers to be terrorist acts. Use the four criteria in the definition of terrorism suggested in this chapter to decide which two of these four incidents were, in fact, terrorist acts

Percent of sales increase-decrease : Did Vallejo's net income as a percent of sales increase, decrease, or remain unchanged over the 3-year period? Provide numerical support for your answer.

What is the main problem with international courts : What is the main problem with international courts

Prepare the journal entry to record depletion : Everly estimates that 4,000 tons of coal can be extracted. If 700 tons are extracted the first year, prepare the journal entry to record depletion

Compute tax depreciation of francis corporation : Francis Corporation purchased an asset at a cost of $50,000 on March 1, 2014.The asset has a useful life of 8 years and a salvage value of $4,000. For tax purposes, the MACRS class life is 5 years. Compute tax depreciation for each year 2014-2019

Features of a database : What is a VIEW and what are its uses?

Concept of flexibility in the law : The concept of flexibility in the law is best illustrated by:

Osi model-switching systemsnetwork-channel processors : A switch is a Data Link layer device, which means it's able to look into the packets that pass through it to examine a critical piece of Data Link layer information: the MAC address. With this information in hand, a switch can keep track of which ..

User Account

All Pages