Reference no: EM132937855

Questions -

Q1. OH Corporation in 2017 paid 24,096,560 for a property with natural resources estimated at 1,025,600 tons. The property was estimated to be worth 2,200,000 after removal of natural resources. Development costs of 11,025,200 were incurred in 2018 before withdrawals or extractions could be made. In 2019, resources removed totaled 150,000 tons. In 2020, additional development costs of 8,400,000 were incurred and resources are estimated to be 1,500,000 tons at the beginning of 2020. Resources extracted in 2020 totaled 175,000 tons. What is the depletion expense for the year 2020?

Q2. OH Corporation in 2017 paid 24,096,560 for a property with natural resources estimated at 1,025,600 tons. The property was estimated to be worth 2,200,000 after removal of natural resources. Development costs of 11,025,200 were incurred in 2018 before withdrawals or extractions could be made. In 2019, resources removed totaled 150,000 tons. In 2020, additional development costs of ?8,400,000 were incurred and resources are estimated to be 1,500,000 tons at the beginning of 2020. Resources extracted in 2020 totaled 175,000 tons. What is the carrying value of the wasting asset as of December 31, 2020?

Q3. A property with a depreciable cost of 5,600,000 with original residual value of 200,000 after 15 years of useful life, had been revalued at a replacement cost of 6,500,000 with a residual of 50,000. About 1/3 of the asset's life had expired and the straight line method for depreciation is used. What is the age of the asset in years?

Q4. A property with a depreciable cost of 5,600,000 with original residual value of 200,000 after 15 years of useful life, had been revalued at a replacement cost of 6,500,000 with a residual of 50,000. About 1/3 of the asset's life had expired and the straight line method for depreciation is used. Compute for the revaluation surplus and provide the correct journal entry.