Thursday
July 24, 2014

Homework Help: Accounting

Posted by Cindy on Friday, February 13, 2009 at 11:29am.

In 2000, purchased land for $5,600,000 that had a natural resource supply estimated at 4,000,000 tons. When the natural resources are removed, the land has an estimated value of $640,000. The required restoration cost for the property is estimated to be $800,000.

Development and road construction costs on the land were $560,000, and a building was constructed at a cost of $88,000 with an estimated $8,000 salvage value when all the natural resources have been extracted.

During 2001, additional development costs of $272,000 were incurred, but additional resources were not discovered. Production for 2000 and 2001 was 700,000 tons and 900,000 tons, respectively.

Compute the depletion charge for 2000 and 2001. Include depreciation on the building, if any, as a depletion charge. Round depletion charge to the nearest cent.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Financial Accounting - Prepare the general journal entries for the following ...
accounting - How do i calculate this problem. An asset was purchased for $150,...
accounting - James, Inc. discovered that equipment purchased three years ago for...
Financial accounting 2 - If a building cost $600,000, has an estimated residual ...
accounting - A bauxite mine was acquired at a cost of $1,500,000 and estimated ...
accounting - A new inventory management system for ABC Company could be ...
Managerial Accounting - The following information was drawn from the year-end ...
Straight-line Depreciation - Please how do i calculate this problem. An asset ...
accounting - A company purchased a machine on January 1 of the current year for...
Accounting - I am trying to figure out if I am doing this accounting problem ...

Search
Members