Prepare the depletion entry for 2006

timer Asked: Mar 27th, 2015

Question description

January 1, 2006, Company acquired a parcel of land for 4,000,000, from which they expect to extract 250,000 tons of ore over the next 10 years. Afterwards, the land will be reclaimed at an estimated cost of 500,000 and sold for estimated 250,000. In 2007 building was constructed on the mine site for 580,000 with an estimated zero value when mining is completed. During 2006, 15 000 tons were mined and in 2005 19,000tons. Also at the beginning of 2007 the amount of ore remaining was estimated at 200,000 tons.

Prepare the depletion entry for 2006

and determine the total amount of inventoriable costs to be recorded in 2007

Depletion; depreciation; total

Tutor Answer

(Top Tutor) Studypool Tutor
School: Boston College
Studypool has helped 1,244,100 students
flag Report DMCA
Similar Questions
Hot Questions
Related Tags

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors