Flossil Fossils Company Purchased a Tract of Land Containing Coal

question 82

Essay

Flossil Fossils Company purchased a tract of land containing coal in the current year for $20,000,000 and then spent $30,000,000 to get a mine ready for operation. The company estimates that there will be 10,000,000 tons of coal available over the next 10 years. The land has a residual value of $500,000. During the current year, 1,000,000 tons of coal were mined.
A)Compute the cost of the natural resource and the depletion rate.
B)Record the journal entry as of December 31 for the current year depletion.

• A)Compute the cost of the natural resource and the depletion rate.
• B)Record the journal entry as of December 31 for the current year depletion.

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Definitions:

Rating Scales

Tools used in evaluations, allowing respondents to indicate their opinion or performance level along a continuum.

Ranking Method

An evaluation process where jobs or employees are compared to each other and ranked based on a predetermined criterion.

Talent Management

“A systemic attraction, identification, development, engagement/retention, and deployment of those individuals with high potential who are of particular value to the organization.”

High Potential

Refers to individuals within an organization identified as having the capability and aspiration to hold successive leadership positions within the company.