Depletion Expense

Related BrainMass Solutions

• Accounting study guide: depreciation

  Calculate the depletion expense for 2011 Exercise 2 You purchase a machine and pay for freight and installation as follows: .

• Depletion Expense

  to calculate the amount of depletion expense.

• Depreciation and Cost Depletion

  Depreciation is calculated at the predetermined rate on carrying value and not on original cost. 2 Depletion method: Depletion expense is a product cost. It becomes a direct cost of inventory. It is applicable to natural resources.

• Differences between depreciation, depletion and amortization

  Specific types of assets are mentioned as well as types of expense.

• Definition of Depletion and Flaws in Computing It

  Unlike depreciation, which assumes that an asset "wears away" based upon time, depletion assumes that the resource is finite and bases the expense on the portion of the asset extracted or sold ("Depletion", 2014).

• Long Term Assets - depreciation

  Compute the depletion charge per ton. Compute the depletion expense that Nelson should record for the year.

• Depreciation, Impairments, Depletion

  The actual expense for that year; depreciation expense, amortization expense, or depletion expense, is listed as an expense on the income statement.

• Record the Purchase of the Land for Dakota Mining Co.

  ANSWERS Requirement A DR: Land 3,580 CR: Cash 3,580 Requirement B DR: Machinery 30,000 CR: Cash 30,000 Requirement C DR: Depletion expense 220 CR: Accumulated depletion - land 220 3580/7500000*460000 Requirement D DR: Depreciation

• Proper accounting for restoration cost

  The proper accounting for these restoration cost is: o Expense them as incurred. o Capitalize and depreciate them over the estimated life of the mine. o Add them into the depletion base of the mine.