86 c c coal company purchased the coal rights in an area for 4 050 000 they estimate 4302173

 

86. C C Coal Company purchased the coal rights in an area for $4,050,000. They estimated that the area contained 9,000,000 tons of coal. The first year of operations in the area yielded 110,000 tons of coal. What is the depletion cost per ton of coal? What is the depletion expense for this first year?

 

 

 

 

 

 

 

87. Cullen's Catering owns a delivery van which it depreciates applying the units-of-output method (units-of-production method). The original cost of the van was $44,000. When it was purchased in July of 2013, it was estimated that it would be driven for 125,000 miles over four years and then sold for an expected salvage value of $4,500. During 2013 the van was driven 17,230 miles. What is the depreciation expense for 2013? (Round final answer to the nearest whole dollar.)

 

 

 

 

 

 

 

88. Using the information shown, record the journal entries to record the amount of the impairment for these two situations.

 

 

 

 

 

 

 

89. C & T Company purchased a company that produced bottled water with fruit juice additives. The brand name for these products, Fruit Options, was well known and had a well-established customer base. At the time of purchase, January 2 of the current year, C & T valued this brand name at $250,000. The life of this intangible asset cannot be determined. However, it was assessed at the end of the year at the purchase price. The patent for the unique processing of the fruit juices had a remaining life of 8 years and an amount of $4,800 was recorded on the books for it. Prepare the journal entries for the amortization of these items at C & T's yearend, June 30.

 

 

 

 

 

 

 

90. Define intangible assets. List several examples of intangible assets. How are intangible assets handled for financial reporting if their lives can be estimated? How are they handled for financial reporting if their lives cannot be estimated?