Question

thank you

< Prev Send to Gradebook Question 8 View Policies Current Attempt in Progress At the beginning of 2020, Marigold Company acquired a mine for $691,000. Of this amount, $103,000 was ascribed to the land value and the remaining portion to the minerals in the mine. Surveys conducted by geologists have indicated that approximately 11,490,000 units of ore appear to be in the mine. Marigold incurred $175,100 of development costs associated with this mine prior to any extraction of minerals. It also determined that the fair value of its obligation to prepare the land for an alternative use when all of the mineral has been removed was $41,200. During 2020, 2,328,000 units of ore were extracted and 2,115,000 of these units were sold. Compute the following The total amount of depletion for 2020. (Round per unit answer to 2 decimal places, s.0.45 for computational purpose and final answer to O decimal places, 3.45,892) Depletion for 2020 $ The amount that is charged as an expense for 2020 for the cost of the minerals sold during 2020. (Round per unit answer to 2 decimal places, s. 0.45 for comp lessandingan dedim MacBook Air

Answer 1

Answer 0 Total amount of 1 Depletion orate Page No 0. depletion or 2020 (mine cost - land value t obligation prepare the = " land for an alternative + Development Corsk) Total no. of Ooie extracted (691000 – 103000 + 41200 + 175100) 11,490,000 : 804300 11,490,000 . = $0.07 Total amount of depletion for 2020 = Depletion rate y No. of ore extracted = 0.07 x 2328000 = ${62960 @ Total amount of depletion for 2020 - $168,960 Amount that the changed as an experiene for 2020 Expense for 2030 for cost of minerals sold during 2020 - Nov of ore extracted x-no-olomiti total depletion for 2020 sold

Page: No ④ 162,960 x 9115000 23 28000 = $148050 :: Amount that is changed as an expense for 2020 = $148050