Chapter 18 Problem 18-6
2008 Ore
Cash 5,400,000
Estimated liability for restoration cost 450,000
Mine improvements 8,000,000
Cash 8,000,000
2009 Depletion (600,000 x 2.60) 1,560,000
Accumulated depletion 1,560,000
Depreciation (600,000 x 4) 2,400,000
Accumulated depreciation 2,400,000
2010 Depletion (400,000 x 1.60) 640,000
Accumulated depletion 640,000
Depletable cost 5,200,000
Less: 2009 depletion 1,560,000
Balance (3,640,000 / 2,275,000 = 1.60) 3,640,000
Mine improvements 770,000
Cash 770,000
Depreciation (400,000 x 2.80) 1,120,000
Accumulated depreciation 1,120,000
Cost (8,000,000 + 770,000) 8,770,000
Less: Accumulated depreciation 2,400,000
Book value (6,370,000 / 2,275,000 = 2.80) 6,370,000
No comments:
Post a Comment