Depletion is the same as depreciation but used for natural resources. True False
Depletion is the same as depreciation but used for natural resources. True False
Homework Answers
Ans :True
Depletion is an Accounting and tax concept/Technique used to allocate the cost of extracting natural resources such as mining,timber,minerals,oils and petroleum products.
It is non cash expenses Similar as depreciation and amortization but it differs that it refers to the gradual exhaustion of natural resource as opposed to depreciable assets.
Add Answer to:
Depletion is the same as depreciation but used for natural
resources. True False
When the usefulness of plant assets used to extract natural resources is directly related to the...
When the usefulness of plant assets used to extract natural resources is directly related to the depletion of a natural resource, their costs are depreciated using the units-of-production method of depreciation True or False True False
When the usefulness of plant assets used to extract natural resources is directly related to the...
When the usefulness of plant assets used to extract natural resources is directly related to the depletion of a natural resource, their costs are depreciated using the units-of-production method of depreciation, as long as the assets will not be moved to and used at another site when extraction of the natural resources is complete. True or False
statements as true or false. 1. All else equal, countries with more natural resources have a...
statements as true or false. 1. All else equal, countries with more natural resources have a higher GDP per capita than those with few natural resources 2. Over the past two hundred years, improvements in productivity have offset lost productivity reduction due to less land being available. 3. The key to prosperity in the 20th century is an economy rich in natural resources. 4. Human and physical capital are only beneficial to an economy when there is an abundance of...
. Is the declining-balance method an acceptable way to compute depletion of natural resources? Explain.
. Is the declining-balance method an acceptable way to compute depletion of natural resources? Explain.
Natural resources have an indefinite life so their use is never expensed. True False
Natural resources have an indefinite life so their use is never expensed. True False
QS 10-10 Natural resources and depletion LO P3
QS 10-10 Natural resources and depletion LO P3 Perez Company acquires an ore mine at a cost of $2,660,000. It incurs additional costs of $744,800 to access the mine, which is estimated to hold 1,900,000 tons of ore. 225,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $380,000. Calculate the depletion expense from the information given.1. & 2. Prepare the entry to record the cost of the...
Recording Entries Related to the Purchase and Depletion of Natural Resources On May, 1, 2020, Star...
Recording Entries Related to the Purchase and Depletion of Natural Resources On May, 1, 2020, Star Mines Inc. purchased an ore mine for $1,800,000 to access an estimated 933,000 tons of ore. The company incurred development costs of $135,000 related to the mine and purchased equipment for the mine for $270,000 with a useful life of 8 years. The equipment has no use outside of this mine project. The company is expected to restore the land for alternative uses after...
A company purchased a tract of land for its natural resources at a cost of $1,500,000....
A company purchased a tract of land for its natural resources at a cost of $1,500,000. It expects to mine 2,000,000 tons of ore from this land. The salvage value of the land is expected to be $250,000. If 150,000 tons of ore are mined during the first year, the journal entry to record the depletion is: Debit Depletion Expense $93,750; credit Natural Resources $93,750. Debit Depletion Expense $112,500; credit Accumulated Depletion $112,500. Debit Cash $93,750; credit Accumulated Depletion $93,750....
Exercise 10-18 Depletion of natural resources LO P1, P3 On April 2, 2017, Montana Mining Co....
Exercise 10-18 Depletion of natural resources LO P1, P3 On April 2, 2017, Montana Mining Co. pays $4.755,880 for an ore deposit containing 1,518,000 tons. The company installs machinery in the mine costing $153,500, with an estimated seven-year life and no salvage value. The machinery will be abandoned when the ore is completely mined. Montana begins mining on May 1, 2017, and mines and sells 166,100 tons of ore during the remaining eight months of 2017 Hint Prepare the December...
QUESTION 15 1 points Save Answer This term is used when the natural resources are exhausted....
QUESTION 15 1 points Save Answer This term is used when the natural resources are exhausted. Depreciation Depletion Wasting None of the above QUESTION 16 1 points Save Answer This tax is assessed for luxury items. Income Excise Sales None of the above QUESTION 17 1 points When you purchase a shirt, you must pay this tax Income Excise Sales Click Save and submit to save and submit. Click SAN Anus to see all ansu An
When the usefulness of plant assets used to extract natural resources is directly related to the depletion of a natural resource, their costs are depreciated using the units-of-production method of depreciation True or False True False
statements as true or false. 1. All else equal, countries with more natural resources have a higher GDP per capita than those with few natural resources 2. Over the past two hundred years, improvements in productivity have offset lost productivity reduction due to less land being available. 3. The key to prosperity in the 20th century is an economy rich in natural resources. 4. Human and physical capital are only beneficial to an economy when there is an abundance of...
Recording Entries Related to the Purchase and Depletion of Natural Resources On May, 1, 2020, Star Mines Inc. purchased an ore mine for $1,800,000 to access an estimated 933,000 tons of ore. The company incurred development costs of $135,000 related to the mine and purchased equipment for the mine for $270,000 with a useful life of 8 years. The equipment has no use outside of this mine project. The company is expected to restore the land for alternative uses after...
Exercise 10-18 Depletion of natural resources LO P1, P3 On April 2, 2017, Montana Mining Co. pays $4.755,880 for an ore deposit containing 1,518,000 tons. The company installs machinery in the mine costing $153,500, with an estimated seven-year life and no salvage value. The machinery will be abandoned when the ore is completely mined. Montana begins mining on May 1, 2017, and mines and sells 166,100 tons of ore during the remaining eight months of 2017 Hint Prepare the December...
QUESTION 15 1 points Save Answer This term is used when the natural resources are exhausted. Depreciation Depletion Wasting None of the above QUESTION 16 1 points Save Answer This tax is assessed for luxury items. Income Excise Sales None of the above QUESTION 17 1 points When you purchase a shirt, you must pay this tax Income Excise Sales Click Save and submit to save and submit. Click SAN Anus to see all ansu An
Most questions answered within 3 hours.
-
The labor force minus the number of employed equals the number
of unemployed.
a. True
b....
asked 7 minutes ago -
Determine the mass in units of grams [g] of 0.49 moles [mol]
of a new fictitious...
asked 29 minutes ago -
A horizontal mass of M=5kg is on a spring and stretched to
x=0.5m when released from...
asked 1 hour ago -
26 of 50
"I have worked at the Arizona Humane Society for ten years, and
have...
asked 2 hours ago -
Compare and contrast zero based budgeting and incremental (or
base year) budgeting.
asked 2 hours ago -
4 pts 10. Which of the following hypothesis would be MOST
difficult to test experimentally? Group...
asked 2 hours ago -
A business owner makes 1,000 items a day. Each day he or she
contributes eight hours...
asked 2 hours ago -
A
circular loop in the plane of a paper lies inca0.65 T magnetic
field pointing into...
asked 2 hours ago -
A business owner is trying to decide whether to buy, rent, or
lease office space and...
asked 2 hours ago -
Thermal Storage Solar heating of a house is much more efficient
if there is a way...
asked 2 hours ago -
Considering the “fits” for group and job design dimensions,
suppose you had 12 employees with different...
asked 2 hours ago -
Consider TCP connection management.
How many segments are typically involved in the TCP connection
establishment? What...
asked 3 hours ago