Question

Copper Explorations recently acquired the rights to mine a new site. Equipment and a truck were purchased to begin mining operations at the site. Details of the mining assets follow:

Asset	Date of Purchase		Cost			Est. Residual				Est. Life
Mineral rights	Mar. 1/20		$	96,000		$	0			4 yrs
Equipment	Mar. 1/20			283,800			0			4 yrs
Truck	Mar. 1/20			134,400			0			4 yrs

Copper's year-end is December 31 and it uses the straight-line method for all mining assets including intangibles.

Required:

2. Assume the mine was closed on October 31, 2023, and the assets were scrapped. Record the disposal of the assets.

please send the answer in clear manner

Answer 1

2. Assuming the mine was closed on October 31, 2023, and the assets were scrapped. Record the disposal of the assets.

S.No.	Date	Particulars	Amount $	Amount $
2.	Dec,31,2020	Amortization - Mineral rights(96000*44/48) ( 96000*0.9166666667)	88000
		Depriciation Equipment(283800*44/48) or ( 283800*0.9166666667)	260150
		Depriciation truck(134400*44/48) or ( 134400*0.9166666667)	123200
		Loss on disposal of assets (Balancing figure)	42850
		Mineral rights		96000
		Equipment		283800
		Truck		134400

Any doubt comment below i will explain or resolve until you got....
PLEASE.....UPVOTE....ITS REALLY HELPS ME....THANK YOU....SOOO MUCH....
Please comment if any querry i will resolve as soon as possible