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Restoration Cost | |||
Possibility 1 | $ 4,60,000 | 25% | $ 1,15,000 |
Possibility 2 | $ 5,60,000 | 40% | $ 2,24,000 |
Possibility 3 | $ 7,60,000 | 35% | $ 2,66,000 |
$ 6,05,000 | |||
table or calculator function | P.V of $1 | ||
n = | 4 | ||
Present Value of Restoration Cost | i = | 10% | |
($615000 X 0.68301) | $ 4,13,221 | ||
Cost of Copper Mine | |||
Minning Site | $ 18,00,000 | ||
Developement Cost | $ 7,60,000 | ||
Restoration Cost | $ 4,13,221 | ||
Cost of Copper Mine | $ 29,73,221 | ||
Depletion expense (mine) | 2021 | 2022 | |
Depletion per pound | $ 0.2563 | $ 0.2563 | ($2920051/11600000) |
Pounds extracted | 32,00,000 | 46,00,000 | |
Depletion expense | $ 8,20,199 | $ 11,79,036 | |
Depletion expense (mining equipment) | 2021 | 2022 | |
Depreciation per pound | $ 0.02 | $ 0.02 | [(260000-28000)/11600000] |
Pounds extracted | 32,00,000 | 46,00,000 | |
Depreciation expense | $ 64,000 | $ 92,000 |
I will give thumbs up for correct answers! Thank you! Jackpot Mining Company operates a copper...
Jackpot Mining Company operates a copper mine in central Montana. The company paid $1,650,000 in 2021 for the mining site and spent an additional $730,000 to prepare the mine for extraction of the copper. After the copper is extracted in approximately four years, the company is required to restore the land to its original condition, including repaving of roads and replacing a greenbelt. The company has provided the following three cash flow possibilities for the restoration costs: (FV of $1,...
Jackpot Mining Company operates a copper mine in central Montana. The company paid $1,150,000 in 2018 for the mining site and spent an additional $630,000 to prepare the mine for extraction of the copper. After the copper is extracted in approximately four years, the company is required to restore the land to its original condition, including repaving of roads and replacing a greenbelt. The company has provided the following three cash flow possibilities for the restoration costs (FV of $1,...
Jackpot Mining Company operates a copper mine in central Montana. The company paid $1,000,000 in 2018 for the mining site and spent an additional $600,000 to prepare the mine for extraction of the copper. After the copper is extracted in approximately four years, the company is required to restore the land to its original condition, including repaving of roads and replacing a greenbelt. The company has provided the following three cash flow possibilities for the restoration costs (FV of $1....
explain each year 2018 and 2019 Help Save & El Submit Check my work mode: This shows what is correct or Incorrect for the work you have completed so far. It does not indicate completion Return to question Jackpot Mining Company operates a copper mine in central Montana. The company paid $1,000,000 in 2018 for the mining site and spent an additional $600,000 to prepare the mine for extraction of the copper. After the copper is extracted in approximately four...
Jackpot Mining Company operates a copper mine in central Montana. The company paid $1,350,000 in 2021 for the mining site and spent an additional $670,000 to prepare the mine for extraction of the copper. After the copper is extracted in approximately four years, the company is required to restore the land to its original condition, including repaving of roads and replacing a greenbelt. The company has provided the following three cash flow possibilities for the restoration costs: (FV of $1,...
Jackpot Mining Company operates a copper mine in central Montana. The company paid $1,750,000 in 2021 for the mining site and spent an additional $750,000 to prepare the mine for extraction of the copper. After the copper is extracted in approximately four years, the company is required to restore the land to its original condition, including repaving of roads and replacing a greenbelt. The company has provided the following three cash flow possibilities for the restoration costs: (FV of $1,...
Jackpot Mining Company operates a copper mine in central Montana. The company paid $1,750,000 in 2021 for the mining site and spent an additional $750,000 to prepare the mine for extraction of the copper. After the copper is extracted in approximately four years, the company is required to restore the land to its original condition, including repaving of roads and replacing a greenbelt. The company has provided the following three cash flow possibilities for the restoration costs: (FV of $1,...
Jackpot Mining Company operates a copper mine in central Montana. The company paid $1,150,000 in 2018 for the mining site and spent an additional $630,000 to prepare the mine for extraction of the copper. After the copper is extracted in approximately 4 years the company is required to restore the land to its original condition, including repaving of roads and replacing a greenbelt. The company has provided the following three cash flow possibilities for the restoration costs: (FV of $1,...
Jackpot Mining Company operates a copper mine in central Montana. The company paid $1,400,000 in 2021 for the mining site and spent an additional $680,000 to prepare the mine for extraction of the copper. After the copper is extracted in approximately four years, the company is required to restore the land to its original condition, including repaving of roads and replacing a greenbelt. The company has provided the following three cash flow possibilities for the restoration costs: (FV of $1,...
Exercise 10-4 (Static) Cost of a natural resource; asset retirement obligation [LO10-1] Jackpot Mining Company operates a copper mine in central Montana. The company paid $1,000,000 in 2021 for the mining site and spent an additional $600,000 to prepare the mine for extraction of the copper. After the copper is extracted in approximately four years, the company is required to restore the land to its original condition, including repaving of roads and replacing a greenbelt. The company has provided the...