Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 218) on april 23, 2018, obtain the rights to opera

218) On April 23, 2018, obtain the rights to operate a mineral mine in Trevors...

90.2K

Verified Solution

Question

Accounting

image
218) On April 23, 2018, obtain the rights to operate a mineral mine in Trevors Mining entered into an agreement with the state of California to purchases included the following California for $12 million. Additional costs and Preparation of site for excavation Mining equipment Construction of various structures on site S 4.800.000 360.000 240.000 After the minerals are removed from the mine, the equipment will be sold for an estimated residual value of $60,000. The structures will be torn down. The mine is expected to produce 1,400,000 tons of ore. After the ore is removed, the land will revert back to the state of California. During 2018. Trevors extracted 210,000 tons of ore from the mine. What total amount would be charged to depletion of the mine and depreciation of the mining equipment an structures for 2018, assuming that Trevors uses the units-of-production method for both depletion and depreciation? (Round your final calculations to the nearest whole thousand dollars.) A) $2,601,000. B) $2,520,000. C) $2,610,000. D) $2,565,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students