In 2018, the Marion Company purchased land containing a mineral mine for $1,660,000. Additional costs of...
In 2018, the Marion Company purchased land containing a mineral mine for $1,640,000. Additional costs of $564,000 were incurred to develop the mine. Geologists estimated that 600,000 tons of ore would be extracted. After the ore is removed, the land will have a resale value of $104,000. To aid in the extraction, Marion built various structures and small storage buildings on the site at a cost of $252,000. These structures have a useful life of 10 years. The structures cannot...
In 2021, the Marion Company purchased land containing a mineral mine for $1,740,000. Additional costs of $676,000 were incurred to develop the mine. Geologists estimated that 400,000 tons of ore would be extracted. After the ore is removed, the land will have a resale value of $116,000. To aid in the extraction, Marion built various structures and small storage buildings on the site at a cost of $184,000. These structures have a useful life of 10 years. The structures cannot...
In 2021, the Marion Company purchased land containing a mineral mine for $1,450,000. Additional costs of $547,000 were incurred to develop the mine. Geologists estimated that 370,000 tons of ore would be extracted. After the ore is removed, the land will have a resale value of $110,000. To aid in the extraction, Marion built various structures and small storage buildings on the site at a cost of $133,200. These structures have a useful life of 10 years. The structures cannot...
In 2021, the Marion Company purchased land containing a mineral mine for $2,050,000. Additional costs of $843,000 were incurred to develop the mine. Geologists estimated that 490,000 tons of ore would be extracted. After the ore is removed, the land will have a resale value of $100,000. To aid in the extraction, Marion built various structures and small storage buildings on the site at a cost of $205,800. These structures have a useful life of 10 years. The structures cannot...
Problem 11-7 Depletion; change in estimate (L011-3. 11-5) In 2018, the Marion Company purchased and containing a mineral mine for $1,300,000. Additional costs of $493.000 were incurred to develop the mine Geologists estimated that 340.000 tons of ore would be extracted. After the one is removed, the land will have a Tesale value of $110.000 To aid in the extraction Marion built various structures and small storage buildings on the site at a cost of $117300. These structures have a...
Problem 11-13 Depreciation and depletion; change in useful life; asset retirement obligation; Chapters 10 and 11 [LO11-2, 11-3, 11-5] On May 1, 2018, Hecala Mining entered into an agreement with the state of New Mexico to obtain the rights to operate a mineral mine in New Mexico for $9 million. Additional costs and purchases included the following (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from...
On May 1, 2021, Hecala Mining entered into an agreement with the state of New Mexico to obtain the rights to operate a mineral mine in New Mexico for $11.0 million. Additional costs and purchases included the following (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.): Development costs in preparing the mine Mining equipment Construction of various structures on site $4,200,000 146,000...
On May 1, 2021, Hecala Mining entered into an agreement with the state of New Mexico to obtain the rights to operate a mineral mine in New Mexico for $11.0 million. Additional costs and purchases included the following (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.): Development costs in preparing the mine $ 4,200,000 Mining equipment 146,000 Construction of various structures on...
On May 1, 2021, Hecala Mining entered into an agreement with the state of New Mexico to obtain the rights to operate a mineral mine in New Mexico for $9.2 million. Additional costs and purchases included the following (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.): Development costs in preparing the mine Mining equipment Construction of various structures on site $2,400,000 146,800...
On April 23, 2021, Trevors Mining entered into an agreement with the state of California to obtain the rights to operate a mineral mine in California for $13.0 million. Additional costs and purchases included the following: Preparation of site for excavation $ 4,550,000 Mining equipment 400,000 Construction of various structures on site 270,000 After the minerals are removed from the mine, the equipment will be sold for an estimated residual value of $71,500. The structures will be torn down. The...