Required information Skip to question [The following information applies to the questions displayed below.] On July 23
Posted: Sat Feb 19, 2022 2:32 pm
Required information
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[The following information applies to the questions
displayed below.]
On July 23 of the current year, Dakota Mining Company pays
$6,099,840 for land estimated to contain 8,472,000 tons of
recoverable ore. It installs and pays for machinery costing
$1,948,560 on July 25. The company removes and sells 436,500 tons
of ore during its first five months of operations ending on
December 31. Depreciation of the machinery is in proportion to the
mine's depletion as the machinery will be abandoned after the ore
is mined.
(e) If the machine will be used at another
site when extraction is complete, how would we depreciate this
machine?
Skip to question
[The following information applies to the questions
displayed below.]
On July 23 of the current year, Dakota Mining Company pays
$6,099,840 for land estimated to contain 8,472,000 tons of
recoverable ore. It installs and pays for machinery costing
$1,948,560 on July 25. The company removes and sells 436,500 tons
of ore during its first five months of operations ending on
December 31. Depreciation of the machinery is in proportion to the
mine's depletion as the machinery will be abandoned after the ore
is mined.
(e) If the machine will be used at another
site when extraction is complete, how would we depreciate this
machine?