Southwest sand and gravel paid 800000 to acquire 1000000, Accounting Basics

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Southwest sand and gravel paid 800000 to acquire 1000000

Southwest Sand and Gravel paid $800,000 to acquire 1,000,000 cubic yards of sand reserves. The following statements model reflects Southwest's financial condition just prior to purchasing the sand reserves. The company extracted 420,000 cubic yards of sand in year 1 and 360,000 cubic yards in year 2.

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Accounting Basics: Southwest sand and gravel paid 800000 to acquire 1000000

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