It is estimated that this tract will yield 120,000 tons of ore with sufficient mineral content to make mining and processing profitable. It is further estimated that 6,000 tons of ore will be mined the first and last year and 12,000 tons every year in between. (Assume 11 years of mining operations.) The land will have a salvage value of )30,000.
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WhatsApp: +86 18221755073In 2024, 51,000 tons of ore were extracted and sold. In 2025, the estimate of total tons of ore in the mine was revised from 410,000 to 497,500. During 2025, 81,000 tons were extracted, of which 61,000 tons were sold. Required: Compute depletion and depreciation of the mine and the mining facilities and equipment for 2024 and 2025.
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WhatsApp: +86 18221755073On July 23 of the current year, Dakota Mining Co. pays $4,715,000 for land estimated to contain 5,125,000 tons of recoverable ore. It installs and pays for machinery costing $410,000 on July 25. The company removes and sells 480,000 tons of ore during its first five months of operations ending on December 31.
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WhatsApp: +86 18221755073Find step-by-step Accounting solutions and the answer to the textbook question Khamsah Mining Company has purchased a tract of mineral land for $900,000. It is estimated that this tract will yield 120,000 tons of ore with sufficient mineral content to make mining and processing profitable. It is further estimated that 6,000 tons of ore will be mined the first and …
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