At the beginning of 2020, Pearl Company acquired a mine for $493,900. Of this amount,...
90.2K
Verified Solution
Link Copied!
Question
Accounting
At the beginning of 2020, Pearl Company acquired a mine for $493,900. Of this amount, $101,000 was ascribed to the land value and the remaining portion to the minerals in the mine. Surveys conducted by geologists have indicated that approximately 12,100,000 units of ore appear to be in the mine. Pearl incurred $171,700 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 $40,400. During 2020, 2,619,000 units of ore were extracted and 2,122,000 of these units were sold. Compute the following. The total amount of depletion for 2020. (Round per unit answer to 2 decimal places, e.g. 0.45 for computational purpose and final answer to 0 decimal places, e.g. 45,892.) Depletion for 2020 $ e Textbook and Media 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, e.g. 0.45 for computational purpose and final answer to 0 decimal places, e.g. 45,892.) Amount that is charged as an expense for 2020 $
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!
