5. In 2019, Hecala initially changed its estimate of the total amount of ore in the mine from 800,000 to 1,000,000 tonnes. Briefly describe the accounting treatment the company will use to account for the change and calculate mine depletion and amortization of mining facilities and equipment by 2019, provided Hecala has produced 150,000 tonnes of ore in 2019. 4. No, mine depletion and amortization of mining facilities and equipment are not reported separately, but are included in the costs of the products sold. Problem 11-13 depreciation and depletion; Changing the lifespan The obligation to pension assets; Chapter 10 and 11 [LO11-2, 11-3, 11-5] On May 1, 2018, Hecala Mining entered into an agreement with the State of New Mexico to obtain the rights to operate a mineral mine in New Mexico for $9 million. The following additional costs and purchases (FV of 1 USD, PV of 1 USD, FVA of 1 USD, PVA of 1 USD, FVAD of 1 USD and PVAD of 1 USD) (Use factors… 2. Calculate mine depletion and amortization of mining facilities and equipment for 2018, provided hecala uses the production unit method for both depreciation and depletion. Four-decimal depletion and amortization rate. On May 1, 2018, Hecala Mining entered into an agreement with the State of New Mexico to obtain the rights to operate a mineral mine in New Mexico for $10 million. Additional costs and purchases included: 2. Calculating mine depletion, amortization of mining equipment and facilities: on May 1, 2021, Hecala Mining entered into an agreement with the State of New Mexico to obtain the rights to operate a mineral mine in New Mexico for $9.2 million.

Additional costs and purchases (FV of 1 USD, PV of 1 USD, FVA of 1 USD, PVA of 1 USD and FVA of 1 USD and PVAD of 1 USD) (Use the corresponding factors in the tables made available): development cost when preparing mining equipment on the site of 2,400,000 146,800 USD… On May 1, 2018, Hecala Mining reached an agreement with… 4. Are mine depletion and amortization of mining facilities and equipment accountd separately in the profit and loss account? Discuss the accounting treatment of these items in the profit and loss account and balance sheet. The contract with the state requires Hecala to return the land to its original state after the end of mining in about four years.