Record any entry required related to the mining rights

Assignment Help Financial Accounting
Reference no: EM132920198

Browns International Ltd. discovered a new iron ore deposit at the Grouse Region. Browns purchased the rights to extract the iron ore and began mining on January 1, 2020. The rights cost $100,000,000 and the regional government requires mining companies to return the land to its natural state at the end of mining activity. Browns estimates that it will operate the mine for 25 years, at which time it will cost $ 25,000,000 for the land restoration project. Browns uses an 8% discount rate and follows IFRS.

Instructions

Problem a) Record the acquisition of the mining rights.

Problem b) Record the obligation for land restoration at January 1, 2020.

Problem c) Record any entry required related to the mining rights and obligation at December 31, 2020. Show all your calculations and round all figures to the nearest dollar.

Reference no: EM132920198

Questions Cloud

What are projected total operating assets of berman corp : Berman & Jaccor Corporation's current sales and partial balance sheet, what are the projected total operating assets? Do not round intermediate calculations.
What the amount and entry of compensation expense calgary : What the amount and entry of compensation expense Calgary should have recorded for calendar 2020 is? On June 30, 2018, Calgary Corp. granted stock options
Prepare the journal entries to be recorded on december : Prepare the journal entries to be recorded on December 31, 2020. Show the amounts and accounts reported on the classified statement of financial position
How your views of effective business communication : Critically analyse texts and/or multimedia material in both a business and academic context and Identify and apply effective communication methods
Record any entry required related to the mining rights : Record any entry required related to the mining rights and obligation at December 31, 2020. Show all your calculations and round all figures to nearest dollars
Provide the entries required on march : With proper title and classification, present the amount of the warranty liability that would be shown on Texans' balance sheet on December 31, 2021
Determine the cumulative effect of the error on net income : Determine the cumulative effect of the error on net income over the three-year period from 2018 through 2020, and on retained earnings by the end of 2020.
Construct table that shows interest revenue reported by sun : Construct a table that shows interest revenue reported by Sun, and the carrying value of the investment, for each interest period for four interest periods.
What is total amount of acquisition indebtedness : What is her total amount of acquisition indebtedness for the purposes of determining the deduction for home mortgage interest?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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