1- Weber Company purchased a mining site for $627,458 on July 1. The company exp

Question

1-

Weber Company purchased a mining site for $627,458 on July 1. The company expects to mine ore for the next 10 years and anticipates that a total of 80,911 tons will be recovered. The estimated residual value of the property is $41,512. During the first year, the company extracted 6,512 tons of ore. The depletion expense is

a. $58,594.60

b. $47,158.98

c. $50,500.01

d. $41,512.00

2-

The name, term, or symbol used to identify a business and its products is called

a. goodwill

b. a patent

c. a trademark

d. a copyright

Explanation / Answer

Dear student, only one question is allowed at a time. I am answering the first question

Depletion expense per unit

= (Purchase cost – Salvage value) / Anticipated units

= ($627,458 - $41,512) / 80,911

= $7.24185833817404 per unit

So, Depletion expense for first year

= Number of units extracted x Depletion rate per unit

= 6,512 x $7.24185833817404

= $47,158.98

So, as per above calculations, option b is the correct option

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