Question

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Problem 9-19A Intangible assets L02,3,6,7 CHECK FIGURES: 2. Accum. Anort, Mineral Rights $57.200, Accum. Deprec., Equip. $224,400: $87,450 Accum. Deprec., Truck pper Explorations recently acquired the rights to mine a new site. Equipment and a truck Co d to begin mining operations at the site. Details of the mining assets follow: Date of Purchase Mar. 1/17 Mar. 1/17 Mar. 1/17 Est. Life 4 yrs 4 yrs 4 yrs Asset Cost Est. Residual Mineral rights Equipment Truck $62,400 244,800 95,400 Copper's year-end is December 31 and it uses the straight-line method for all mining assets in intangibles. Requlred 1. Record amortization and depreciation at December 31, 2017, on the mining assets, including mineral rights. 2. Assume the mine was closed on October 31, 2020, and the assets were scrapped. Record the posal of the assets.

Answer 1

	Date	Account Titles and Explanation	Debit	Credit
1	Dec. 31, 2017	Amortization expense-Mineral rights ($62400 x 10/48)	13000
		Depreciation expense-Equipment ($244800 x 10/48)	51000
		Depreciation expense-Truck ($95400 x 10/48)	19875
		Accumulated amortization-Mineral rights		13000
		Accumulated depreciation-Equipment		51000
		Accumulated depreciation-Truck		19875
		(To record amortization and depreciation)
2	Oct. 31, 2020	Accumulated amortization-Mineral rights ($62400 x 44/48)	57200
		Accumulated depreciation-Equipment ($244800 x 44/48)	224400
		Accumulated depreciation-Truck ($95400 x 44/48)	87450
		Loss on disposal of assets	33550
		Mineral rights		62400
		Equipment		244800
		Truck		95400
		(To record disposal of assets)