On January 1, 2013, the Jones-Smith Corp

question 128

Essay

On January 1, 2013, the Jones-Smith Corp. acquired a parcel of land for $6,000,000 from which it expects to extract 300,000 tons of coal over the next ten years. Afterwards, the land will be reclaimed at an estimated cost of $650,000 and sold for an estimated $350,000. In 2014, a building was constructed on the mine site for $680,000 with an estimated zero value when mining is completed.
During 2013, 15,000 tons were mined, and in 2014, 19,000 tons were mined. At the beginning of 2014, the amount of ore remaining was revised to 250,000 tons.
Required:
a.Prepare the depletion entry for 2013.
b.Determine the total amount of inventoriable costs to be recorded in 2014.

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Definitions:

Lower Quartile

A statistical measure indicating the value below which 25% of the observations in a dataset fall.

Yearly Donations

The sum of contributions received within a one-year period, often tracked by charitable or non-profit organizations.

Thousands of Dollars

A unit of measurement used in financial reporting, economic analysis, or budgeting, representing a multiplier of one thousand dollars.

Lower Quartile

Another term for the first quartile, indicating the value below which 25% of the data points in a distribution fall.