Mr cruz, procured a tract of timber for P65000. The worth of the land was established to be P17000 and the worth of the 23,500 trees was P45000. During the first year of operation, they cut down 4500 trees. What was the depletion allowance that year?

Mr cruz, procured a tract of timber for P65000. The worth of the land was established to be P17000 and the worth of the 23,500 trees was P45000. During the first year of operation, they cut down 4500 trees. What was the depletion allowance that year?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: e of $1,150,000, variable cost of goods sold of $850,000, variable selling exper analysis as of…

A: Revenue - The total amount of revenue a business really makes from the sale of goods or services…

Q: 1. What is the objective of a financial statement? 2. What are the components of a financial…

A: As per the Honor code of Bartleby we are bound to given the answer of first three sub part only,…

Q: List and explain four times when there is an exception to the general rule that there is no…

A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…

Q: Question: 1. what is the correct source documents for credit purchase by business X. option: a)…

A: Purchase of goods and services in the business can be made for cash or can be on credit basis. Under…

Q: Exercise 13-29 (Algorithmic) (10.3) Sebastian purchases two pieces of equipment for $147,000.…

A: COST BASIS Cost basis is the original value of an asset for tax purposes, usually the purchase…

Q: Explain relevant law General Rule Exception Apply law to key facts General Rule Exception

A: In the question this has been asked regarding the long term capital gains. Gains which a taxpayer…

Q: You are a shareholder in a corporation. The corporation earns $10 per share before taxes. Once it…

A: Given that, Earnings per share before taxes = $10 Corporate tax rate = 36% Personal tax rate on…

Q: Which of the following errors would be detected by a trial balance? i) Office salaries posted…

A: The trial balance is prepared to record the final balance of each account of the business. The…

Q: TLF Ltd wishes to sell 28,000 units of its product, which has a variable cost of £30 to make and…

A: Lets understand the basics. Sale price is a price at which product is going to get sold to the…

Q: Use the information in the following trial balance to prepare a balance sheet for Red Inc. as of…

A: Balance Sheet :— It is one of the financial statement that shows list of final balances of assets,…

Q: Using the following information, please find the Operating expense %: Occupancy cost. Total profit,…

A: Operating Expense Percentage :— It is calculated by dividing operating expenses by sales revenue.…

Q: Could you explain why the manufacturing cost of $2,815,000 was used to calculate the unit cost…

A: Total Manufacturing Cost = Direct Material + Direct Labour + Factory Overheads Cost of Goods…

Q: [The following information applies to the questions displayed below.] Valley Company's adjusted…

A: Working notes: 1. Income Summary = $280,440 (sales) -$249,355 ( all Debit balances) = $31,085

Q: A company that uses the cash method of accounting bills a customer $10,000 for services rendered on…

A: Basis of Accounting- There are two basis of accounting. Cash Basis Accrual Basis. Cash Basis -…

Q: Problem 3-9A (Algo) Complete the full accounting cycle (LO3-3, 3-4, 3-5, 3-6, 3-7) [The following…

A: A trial balance is a financial report showing the closing balances of all accounts in the general…

Q: Recall that Kate previously obtained a $15,000 bank loan, signing a note payable, on November 30.…

A: Adjustment Journal Entry for Interest Payment An expense for the firm that occurs during a fiscal…

Q: Show the tax benefit (per dollar invested) that exists on a municipal bond with a yield of 8U basis…

A: The revenue that the government receives from taxes is used to finance public spendings, such as the…

Q: The following accounts of ABC Manufacturing Co. appeared in its balance sheets on December 31, 2013…

A: Direct material Used :— It is the cost of material that is directly incurred in the manufacturing…

Q: Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation…

A: The Discounted Dividend Model (DDM) is a quantitative method for valuing the price of the shares a…

Q: Valley Company's adjusted account balances from its general ledger on August 31, its fiscal…

A: Income Statement :— It is one of the financial statement that shows profitability of company during…

Q: Samuel and Annamaria are married, file a joint return, and have three qualifying children. In 2022,…

A: In the given case, Samuel and Annamaria are married and file a joint return, and have three…

Q: Please explain the correct answer A 10-year maturity coupon bond has a six-year duration. An…

A: The Duration is the weighted average of the bond cash flows that are Coupons and face value, Thus,…

Q: Sysco 169, is the largest glob service products, serving restaurants, hotels, schools, hospitals,…

A: Solution: Journal entry: S.NO. Account titles & explanation…

Q: Ace Company buys a machine on April 1, Year One, for $50,000 in cash. It has a residual value of…

A: As the time period goes on the value of machine goes on decreasing and in straight line there is…

Q: Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Sales Variable costs…

A: Operating leverage indicates the ability of the business to manage fixed and variable costs to…

Q: your net worth

A: The net worth refers to the total wealth of any individual or company. It is very important to…

Q: Define the elements of financial statements identified in SFAC No. 3 and SFAC No. 6.

A: Statement of Financial Reporting Concept (SFAC) The International Accounting Standards Board (FASB)…

Q: Company D's top management is growing concerned that one of its divisions, Division D, will not be…

A: The process of making ethical decisions is founded on fundamental aspects of a person's character,…

Q: Samke Limited sells new equipment and repairs equipment for their regular customers. The following…

A: The question requires preparation of profit and loss account and statement of comprehensive income.

Q: Which of the following account (s) would be larger in amount on an adjusted trial balance than on a…

A: Options D is correct

Q: Why is property and equipment not reported on the balance sheet at fair value?

A: A financial statement called a balance sheet lists an organization's assets, liabilities, and…

Q: Schwert Corp. shows the following information on its 2015 income statement: Sales = $215,000; COGS=…

A: Cash flow statement is one of most important financial statement. Cash flow statement have three…

Q: ivable Equipment ated Depreciation Short Retail Stores nd Equity ble ck ($10 par value) ue ings…

A: Basic EPS refers to the concept of assigning the desired sum value of a company profit to its one…

Q: Regarding Step4, I have some conservation.. Dr Bad Debt Expense is 5,500 Cr Allowance for doubtful…

A: Allowance for doubtful debt is provision made for estimated uncollectible accounts receivables.…

Q: August 31, 2022 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: $0.40 per unit; carriage inwards - $0.60 per unit. Recently , due to poor handling and storage,…

A: Purchase cost refers to the sum value of money involved in buying a product or a service including…

Q: 2. C-type Company receives $ 400,000 when it issues 6% mortgage note payable for 4 years to finance…

A: Accounts payables Accounts payable (AP), sometimes known as "payables," is the term used to…

Q: Provide clearer work steps for the Bond Price PV (10,C6, -c5, -c3)

A: Price of bond depends on coupon payments and maturity value of bond. We get price of bond after…

Q: Abdul runs his own public relations business. During the year he incurred $900 on membership of the…

A: A golf club or sports club, or any recreational club, seems to be a business that was founded…

Q: On entity enters into a contract to transfer Products A and B to a customer in exchange for P1,000.…

A: As per the Honor code of Bartleby we are bound to given the answer of first question only, Please…

Q: correct source documents for Business X sold goods for cash. option a) invoice received by the…

A: Source Documents - Source documents provide unmistakable proof that any financial transaction…

Q: Please answer questions 4 and 5 in it's entirety. I already used another question to get 1,2 and 3.…

A: Contribution margin ratio=Contribution marginSales×100Break even point (units)=Total fixed…

Q: 6.4

A: Cost of Good Sold - It is relative expense incur on producing the goods or providing services by the…

Q: Exercise 5-8 Perpetual: Inventory costing methods-FIFO and LIFOP1 Hemming Co. reported the following…

A: Workings :- 1) Calculation of total sales :- Units sold * selling price per unit = (150 units *…

Q: Builder Products, Incorporated, uses the weighted-average method in its process costing system. It…

A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Chris Bogut just received a signing bonus of $980,400. His plan is to invest this payment in a fund…

A: The question is based on the concept of Financial Management.

Q: During 2018, LeBron Corporation accepts the following notes receivable. a. On April 1, LeBron…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

VIEW

Step 2 Calculation of Depletion Allowance

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Mr Cruz, procured a tract of timber for P65,000. The worth of the land was established tobe P17,000 and the worth of the 23,500 trees was P45,000. During the first year ofoperation, they cut down 4,500 trees. What was the depletion allowance that year?
A small lumber company bought a tract of timber for $35,000, of which $5000 was the land’s value and $30,000 was the value of the estimated 1.5 million board-feet of standing timber. The first year, the company cut 100,000 board-feet of standing timber. What was the year’s depletion allowance?
Stumped, Inc., purchased the timber rights for $7,000,000. It is expected to produce a total of 1,000,000 cords of wood over 4 years, after which it will be sold for $2,000,000. What is the depletion rate per cord of wood?
A lumber company purchased a tract of timber for $70,000. The value of the 25,000 trees on the tract was established to be $50,000. The value of the land was established to be $20,000. In the first year of operation, the lumber company cut down 5,000 trees. What was the depletion allowance for this year?
uppose you bought a timber tract for $850,000,and the land was worth as much as $250,000. Anestimated 6.8 million board feet (MBF) of standingtimber was in the tract. If you cut 1.5 MBF of timberfor this fiscal year, determine your depletion allowance for the year
A copying machine costs P 40,000, has a life of 4 years with a salvage value of P 5,000. The following are the production output of this machine in number of copies: For the first year, 1800 copies, second year, 2200 copies, third year, 3000 copies, and fourth year, 4000 copies. What is the depreciation charge in the second year?
Rayonier Forrest Resources purchased a small tract of timber land for $70,000 that contained 25,000 trees. The value of the land was estimated to be $20,000. In the first year of operation, the lumber company cut down 7000 trees. According to the cost depletion method, the depletion deduction for year 1 is closest to: (Hint: Value of land cannot be depreciated or depleted.) a. $2000b. $7000c. $10,000d. $14,000
Chaparral Sand and Gravel purchased a pit for $900,000 that is expected to yield 6000 tons of gravel and 7000 tons of sand per year. If the gravel will sell for $6 per ton and the sand for $9 per ton, determine the annual depletion charge according to the percentage depletion method.
Happy Timber, Inc. owns timberland that is used to supply firewood. The timberland was purchased for $480,000 of which $125,000 relates to the land itself, and it is expected to produce 1,000,000 total pieces of firewood over the next 5 years. If 75,000 pieces of firewood are cut and sold during the year, prepare the journal entries for the depletion and sale of the firewood. *Note: should have two iournal entries.
An engineer bought equipment for P500,000. He spent an additional amount of P30,000 for the installation and other expenses. The estimated useful life of the equipment is 10 years. The salvage value is X% of the first cost. Using the straight line-method of depreciation, the book value at the end of 5 years will be P291,500. What is the value of X?
A drilling machine may be used to dig ditches. The contractor purchased it for P200k & estimates that it will be able to dig 750k meters during its life and he expects to receive 10% as scrap value when he sells it. What if during a certain year he used the machine to dig 150k meters of trench, determine depreciation cost for that year.
The initial cost of an evaporative crystallizer including its installation is P930,000. The approve life of the equipment is 13 years for depreciation. The estimated salvage value of the equipment is P66,000 and the cost of dismantling is P22,000. Using DBM method, what is the annual depreciation charge and what is the book value of the machine at the end of the eight year.