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11-33 Name: Enter the appropriate amounts/formulas in the blue-shaded cells. The word "Wrong" will appear to the left of incorrect entries. 2012...

On January 2, 2014, Adelaide Rose purchased land with valuable natural ore deposits for $13 million . The estimated residual value of the land was $4 million. At the time of purchase, a geological survey estimated 3 million tons of removable ore were under the ground. Early in 2014, roads were constructed on the land to aid in the extraction and transportation of the mined ore at a cost of $975,000. In 2014, 75,000 tons were mined. In 2015, Adelaide fired her mining engineer and hired a new expert. A new survey made at the end of 2015 estimated 4.5 million tons of ore were available for mining. In 2015, 265,000 were mined. Assuming that all the ore mined was sold, how much was the depletion expense for 2014 and 2015?

11-33 Name: stephannie pelingon Enter the appropriate amounts/formulas in the blue-shaded cells. The word “Wrong” will appear to the left of incorrect entries. 2012 Depletion Expense Cost of natural resources less residual value Land improvements - roads Total cost to be depleted Estimated tons of ore Cost / Tons Depletion cost per ton / Tons x Rate Depletion expense x 2013 Depletion Expense 2012 cost from above Less: 2012 depletion expense from above Remaining cost to deplete at beginning of 2013 Remaining tons of ore at beginning of 2013 Cost / Tons Depletion cost per ton / Tons x Rate Depletion expense x
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11-33 Name: Enter the appropriate amounts/formulas in the blue-shaded cells. The word “Wrong” will appear to the left of incorrect entries. 2012 Depletion Expense Cost of natural resources less residual value $9,000,000 Land improvements - roads 975,000 Total cost to be depleted $9,975,000 Estimated tons of ore 3,000,000 Cost / Tons Depletion cost per ton $9,975,000 / 3,000,000 $3.33 Tons x Rate Depletion expense 75,000 x $3.33 $249,750 2013 Depletion Expense 2012 cost from above $9,975,000 Less: 2012 depletion expense from above 249,750 Remaining cost to deplete at beginning of 2013 $9,725,250 Remaining tons of ore at beginning of 2013 4,765,000 Cost / Tons Depletion cost per ton $9,725,250 / 4,765,000 $2.04 Tons x Rate Depletion expense 265,000 x $2.04 $540,600
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8546078.xls

11-33 Name: stephannie pelingon Enter the appropriate amounts/formulas in the blue-shaded cells.
The word “Wrong” will appear to the left of incorrect entries.
2012 Depletion Expense
Cost of...

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