50.1K

Verified Solution

Link Copied!

Required:

Compute depletion and deprecistion of the mine snd the mining facilites and equipment for $2024$ and $2025.$ Marion use: the

units$-$af$-$production methad to determine depreciation an mining facilites and equipment.

Compute the book value of the mineral mine, structures, snd equipment ss of December $31,2025.$

Answer is not complete.

Complete this question by entering your answers in the tabs below.

Buariad $2$

Compute the book value of the minoral mine, struchures, and equipment as of Decerrber $31,2025.$

Note: Do not round intermediate calculations. Round your final answers to nearest whale dallar.In $2024,$ the Marion Compony purchsaed land contsining a mineral mine for $$1,550,000.$ Additionsl coats of $$599,000$ were Incurred

to develop the mine. Gealoglsts eatimated that $390,000$ tons of ore would be extracted. After the are la removed, the land will have s

resole vslue of $$120,000.$

To sid in the extraction, Marion buil visious structures and smal storage buildings on the slte at a cost of $$144,300.$ These structures

hive a useful life of $10$ years. The structures connot be moved after the ore has been removed and will be left at the alte lin sodition,

new equlpment coating $$91,000$ was purchased and Inats ed at the site. Marion does nat plan to move the equlpment to another site,

but eatimstes that it can be sold st auction for $$3,000$ after the mining project ls completed.

In $2024,49,000$ tons of ore were extracted and sold. In $2025,$ the estimate of total tons of ore in the mine was revised from $390,000$

to $477,500.$ During $2025,79,000$ tons were extrscted, of which $59,000$ tons were gold.

Required:

Compute depletion and deprecistion of the mine snd the mining facilities and equipment for $2024$ and $2025.$ Marion uses the

units$-$at$-$production methad to determine deprecistian an mining facilities and equipment.

$2$ Compute the book value of the minersl mine, structures, snd equipment as of December $31,2025.$

Answer is not complete.

Complete this question by entering your answers in the tabs below.

Compute depletion and depreciation of the mine and the mining facilites and equipment for $2024$ and $2025.$ Marion uses the

units$-$at$-$production method to determine depreciation on mining facilities and equipment.

Note: Do not round intermediste calculations. Flound your final answers to neareet whale dalar.

Show all imagesShow all images

Answer & Explanation Solved by verified expert

See Answer