Solution-What total amount of depletion should be recorded

What total amount of depletion should be recorded

Assignment Help Accounting Basics

Reference no: EM132950077

Question - At the beginning of the current year, Vorst Company purchased a mineral mine for P26,400,000 with removable ore estimated at 1,200,000 tons. After it has extracted all the ore, the entity will be required by law to restore the land to its original condition at an estimated cost of P2,100,000. The present value of the estimated restoration cost is P1,800,000. The entity believed that it will be able to sell the property afterwards for P3,000,000. During the current year, the entity incurred P3,600,000 of development cost preparing the mine for production, removed 80,000 tons of ore and sold 60,000 tons. What total amount of depletion should be recorded for the current year?

a. 1,455,000

b. 1,940,000

c. 1,920,000

d. 1,440,000

Reference no: EM132950077

Questions Cloud

At what amount should the building be shown : At what amount should the building be shown in DAFFODIL's statement of financial position of? Solutions must be presented in good accounting form

Explain future tensil cuses : Explain future tensil cuses

Distinguish a true experiment from research designs : What essential characteristics distinguish a true experiment from other research designs?

What does the fact that mcdonald has so many locations : What does the fact that McDonald's has so many locations in France, which are also some of the most profitable locations around the world

What total amount of depletion should be recorded : During the current year, the entity incurred P3,600,000 of development cost preparing the mine for production. What total amount of depletion should be recorded

Calculate horizon value using corporate valuation method : Calculate the horizon value using the corporate valuation method. Note that Delta has $20 million in debt and 10 million common shares outstanding

Considering attending the regional trade show : -Suppose that you are a buyer for an independent retailer and you are considering attending the regional trade show. What are two (2) questions you should ask y

What would be the net a-r on the balance sheet : Assume you estimate 8% of Accounts Receivable to eventually become Bad Debts. What would be the net A/R on the Balance Sheet after preparing your journal entry

How do they turn the data into information : How do they turn the data into information? As a manager, what do you need to understand when reading or listening to economic and business reports?

User Account

All Pages

What total amount of depletion should be recorded

Reference no: EM132950077

Reference no: EM132950077

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT