A. What is the depletion rate per yard of sand? B. What is the book value of the

Question

A. What is the depletion rate per yard of sand? B. What is the book value of the sand mine at December 31, 2016? (2) Brenner Co. purchased a sand mine for $1,000,000 on January 1, 2016. The mine has 500,000 cubic yards of sand. Brenner excavated 150,000 cubic yards of sand in 2016 and 200,000 cubic yards of sand in 2017. Required (show calculations) A. What is the depletion rate per yard of sand? B. what is the book value of the sand mine at December 31, 2016? hat is the book value of the sand mine at December 31, 2017?

Explanation / Answer

a) Depletion rate = 1000000/500000 = 2 per yard

b) Book value at december 31,2016 = Cost-accumlated depreciation

                                                           = 1000000-(150000*2)

Book value at december 31,2016 = 700000

c) Book value at december 31,2017 = Cost-accumlated depreciation

                                                           = 1000000-(350000*2)

Book value at december 31,2017 = 300000

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.