. Is the declining-balance method an acceptable way to compute depletion of natural resources? Explain.
Homework Answers
Declining balance method is used where asset is depreciating at constant rate. In case of Natural resource asset, these assets get depleted based on consumption pattern. If in a particular year, more number of units of resources are consumed/extracted , asset will get more depreciated . Therefore, for such assets, depreciation is calculated using depletion method .Depletion is allocation of cost of natural resource to the period based on the rate of consumption of natural resources. Hence declining-balance method is not an acceptable way to compute depletion of natural resources.
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Is the declining-balance method an acceptable way to compute
depletion of natural resources? Explain.
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
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...
Explain depreciation. What are the arguments for using the double-declining balance method of depreciation? (0) Explain...
Explain depreciation. What are the arguments for using the
double-declining balance method of depreciation?
(0) Explain depreciation. What are the arguments for using the double declining balance method of depreciation?
Please explain how to do units of activity method and declining balance. Novak Corp. purchased a...
Please explain how to do units of activity method and declining balance. Novak Corp. purchased a delivery truck for $35,600 on January 1, 2020. The truck has an expected salvage value of $1,600, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 16,100 in 2020 and 11,700 in 2021. Compute depreciation expense for 2020 and 2021 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double-declining-balance...
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
PART B) Compute 2020 depreciation expense using the double-declining-balance method, assuming the machinery was purchased on...
PART B) Compute 2020 depreciation expense
using the double-declining-balance method, assuming the machinery
was purchased on October 1, 2020.
Wildhorse Company purchased machinery on January 1, 2020, for $94,400. The machinery is estimated to have a salvage value of $9,440 after a useful life of 8 years. (a) Compute 2020 depreciation expense using the double-declining-balance method. Depreciation expense $
Mohr Company purchases a machine for $26,000.00.using double declining balance method , what is the value...
Mohr Company purchases a machine for $26,000.00.using double
declining balance method , what is the value at end of year 2
okmarks Window Help 5.66 GB 46% Fri 11:07 PM Q OE newconnect.mheducation.com Content Update Apple 1D Settings Content Institution Page Blackboard Learn Exam Some account services will not be available until you sign in again View 3 6 Saved Help Save &Exit Submit TB MC Qu. 08-130 A company purchased... 4 A company purchased a tract of land for...
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
Flannery Company engages In the exploration and development of many types of natural resources. In the...
Flannery Company engages In the exploration and development of many types of natural resources. In the last two years, the company has engaged In the following activities Jan Year 1 Purchased for $28e,980 a silver mine estimated to contain 828,880 tons of silver ore July , Year 1 Purchased for $2,898,8ee cash a tract of land containing timber estimated to yield 3,848,8e8 board feet of lumber At the time of purchase, the land had an appraised of $179,88 Feb. 1,...
One accelerated depreciation method is called fixed-percentage-of-declining-balance. Explain what is meant by the terms “fixed percentage”...
One accelerated depreciation method is called fixed-percentage-of-declining-balance. Explain what is meant by the terms “fixed percentage” and “declining balance.” For what purpose is this method most widely used? Post a response in 100 to 150 words
Explain depreciation. What are the arguments for using the
double-declining balance method of depreciation?
(0) Explain depreciation. What are the arguments for using the double declining balance method of depreciation?
PART B) Compute 2020 depreciation expense
using the double-declining-balance method, assuming the machinery
was purchased on October 1, 2020.
Wildhorse Company purchased machinery on January 1, 2020, for $94,400. The machinery is estimated to have a salvage value of $9,440 after a useful life of 8 years. (a) Compute 2020 depreciation expense using the double-declining-balance method. Depreciation expense $
Mohr Company purchases a machine for $26,000.00.using double
declining balance method , what is the value at end of year 2
okmarks Window Help 5.66 GB 46% Fri 11:07 PM Q OE newconnect.mheducation.com Content Update Apple 1D Settings Content Institution Page Blackboard Learn Exam Some account services will not be available until you sign in again View 3 6 Saved Help Save &Exit Submit TB MC Qu. 08-130 A company purchased... 4 A company purchased a tract of land for...
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
Flannery Company engages In the exploration and development of many types of natural resources. In the last two years, the company has engaged In the following activities Jan Year 1 Purchased for $28e,980 a silver mine estimated to contain 828,880 tons of silver ore July , Year 1 Purchased for $2,898,8ee cash a tract of land containing timber estimated to yield 3,848,8e8 board feet of lumber At the time of purchase, the land had an appraised of $179,88 Feb. 1,...
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