I need step by step instructions on how to solve the following questions. The textbook is not as clear on the topics as I had hoped. Please give detailed explanations so that the concept is clear. Thanks.
In 2010, CopperCo Corporation purchased a mine for $200 million ($30 million were applicable to the land). An independent evaluation estimated the mine's reserves at 7.5 million tons. In 2010, CopperCo extracted 0.9 million tons.
Instructions: Calculate the company's depletion expense for 2010.
a. In 2011, McLane Company exchanged equipment for two delivery trucks. The equipment had been purchased for $110,000 ten years ago and has since been fully depreciated. While the equipment was recently appraised at $19,000, a reliable valuation for the trucks was not available. Assume the transaction has commercial substance.
Instructions: Prepare the required entr(ies) to record the exchange.
b. Beringer Co. has a computer that cost $106,000 on March 20, 2006. This old computer had an estimated life of ten years and a residual value of $6,000. On December 23, 2010, the old computer is exchanged for a similar computer with a market value of $58,000. Beringer also received $6,000 cash. Assume that the last fiscal period ended on December 31, 2009, that straight-line depreciation is used, and that the transaction does not have commercial substance.
Prepare all entries that are necessary on December 23, 2010.
Brokaw Corporation's balance sheet includes the following asset:
Less: Accumulated depreciation: (20,000)
Carrying amount $90,000
After performing its annual review for impairment, Brokaw obtains the following data:
Asset value in use: $64,000
Fair value less selling costs: $67,000
Assuming Brokaw uses the rational entity impairment model,
1. Calculate the recoverable amount.
2. Calculate the impairment loss.
3. Prepare the entry to record the impairment loss
The expert examines amortization and depreciation.