Question

1248300 SHOW ANSWER SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT v (b) Your answer is partially correct. Try again. Show how this mine is reported on the balance sheet at the end of the first year. Pina Colada Mining Co. Balance Sheet (Partial) 1248300 Inventory 1248300 Accumulated Depletion Less SHOW LIST OF ACCOUNTS LINK TO TEXT bp Nandan modogavalaSa F4 F5 Fa & T Y U

Answer 1

Cost of mine	$       7,125,000
Estimated ore extraction	37,500,000
First-year extraction	6,570,000
Depletion for the first year	7125000*6570000/37500000
Depletion for the first year	$       1,248,300
Balance sheet presentation
Mine	$       7,125,000
Less: Accumulated depletion	$     (1,248,300)
Mine-net value	$       5,876,700