PROBLEM 30-1

*2021 Wasting Asset 960,000

Cash 960,000
Depletion (1m/2.4m x 960,000) 400,000
Accumlated Depletion 400,000
*2022 Wasting Asset 490,000
Cash 490,000
Depletion 450,000
Accumlated Depletion 450,000

*C/A 12,31/21 (960,000 x 1.4m/2.4) 560,000

Additional costs 490,000
Total 1,050,000
*2022 Depletion (1,050,000 x 600,000/1,400,000) 450,000

*2023 Wasting Asset 500,000

Cash 500,000
Depletion 308,000
Accumulated Depletion 308,000

*12/31/22 CA (1,050,000 - 450,000) 600,000

2023 Additional Costs 500,000
Total 1,100,000
*2023 Depletion (1,100,000 x 700/2,500) 308,000

PROBLEM 30-2

*2021 Wasting Asset 3,960,000

Cash 3,960,000
Building 960,000
Equipment 1,240,000
Cash 2,200,000
Depletion (3.84m x 12/120) 384,000
Accumulated Depletion 384,000

*UL in yearsof WA = 120,000/24,000 = 5 years

Depreciation - Building (960,000 x 12/120) 96,000

A/D - Building 96,000

Depreciation - EQuipment (1,240,000/4) 310,000

A/D - Equipment 310,000

*2022 Depletion (3.84m x 25/120) 800,000

 Accumulated Depletion 800,000

Depreciation - Building (960,000 x 25/120) 200,000

A/D - Building 200,000

Depreciation - EQuipment (1,240,000/4) 310,000

A/D - Equipment 310,000

PROBLEM 30-3

*2021 Wasting Asset 5,400,000

Cash 5,400,000
Wasting Asset 450,000
Cash 450,000
Mine Improvements 8,000,000
Cash 8,000,000
*2022 Depletion (5.2m x 600/2,000) 1,560,000
Accumulated Depletion 1,560,000
Dereciation (8m x 600/2,000) 2,400,000
A/D - Mine Improvements 2,400,000
*2023 Depletion (3.64m x 400/2,275) 640,000
Accumulated Depletion 640,000
*Rem. DC, 12/31/22 (5,200,000 - 1,560,000)

C/A Mine Improvements (8m - 2.4m) 5,600,000

2023 Additional costs 770,000
Total 6,370,000
2023 Depreciation = 6,370,000 x 400/2,275) 1,120,000

Depreciation 1,120,000
A/D - Mine Improvements 1,120,000

PROBLEM 30-4

Retained Earnings 10,000,000

Accumulated Depletion 20,000,000
Total 30,000,000
Capital liquidated (15,000,000)
Depletion in ending inventory (20,000 x 50) (1,000,000)
Maximum Dividends 14,000,000