Cameron Corp. purchased a mine on January 1, 2018, for$530,000, which is estimated to contain 35,000 tons of iron ore. There is no residual value. The business extracted and sold 7,500 tons of ore in 2018 and 10,800 tons of ore in 2019. What is the depletion expense for 2019? (Round any intermediate calculations to two decimal places, and your final answer to the nearestdollar.) A.
$277,062
B.
$252,838
C.
$113,550
D.
$163,512
Answers
Answer:
D.$163,512
Explanation:
Depletion expense is a charge against profits for the use of natural resources.
Depletion rate = cost to purchase resource/ number of units = $530,000/ 35,000 tons = $15.14 per ton
Depletion expense for 2019 = Depletion rate * number of units extracted and sold in 2019 = $15.14 * 10,800 = $163,512
Related Questions
Equipment was purchased for $300,000. Freight charges amounted to $14,000 and there was a cost of $40,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $60,000 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be:________. a. $70,800 b. $58,800 c. $49,200 d. $48,000
A common size analysis requires the representation of financial statement data in terms of a single financial statement item (or base account or value). What is the most commonly used base item for a common size income statement
Both product development strategies and diversification strategies involve ________. A. leaving the current market selling a company's B. current products developing a new product C. selling in a company's current market D. selling in new as well as existing markets
Describe some strategic differences between these firms. What type of trade-off decisions have these firms made
(b) Which basis of accounting (cash or accrual) provides more useful information for decision-makers?
Answers
Answer:
a. The first year's net earnings under the cash basis of accounting is $7,600 and the first year's net earnings under the basis of accounting is $12,200
b. Accrual basis of accounting provides more useful information.
Explanation:
a. In order to calculate the first year's net earnings under the cash basis of accounting we would have to use the following formula:
Cash basis net earnings = Service revenue (Cash) – Cash expenses – Prepaid expenses
Cash basis net earnings =$22,000 – $12,000 – $2,400
Cash basis net earnings =$7,600
In order to calculate the first year's net earnings under the the basis of accounting we would have to use the following formula:
Accrual basis net earnings = Service revenue – Operating expenses incurred
Accrual basis net earnings= $28,000 – $15,800
Accrual basis net earnings=$12,200
b. Accrual basis of accounting provides more useful information, because in this system revenues are recorded what actually earned and expenses are recorded what actually incurred for earning such revenues. Therefore, it gives better profit picture
$13.50 170.2 142.5
Enter your responses rounded to two decimal places.
Based on the information above:
a. The 2010 real entry-level wage is $.
b. The 2003 real entry-level wage is $.
c. The 2003 nominal entry-level wage is $.
Answers
The 2010 real entry-level wage will be $7.93; the 2003 real entry-level wage is $8.43 and 2003 nominal entry-level wage is $12.01 for college graduates.
How to calculate the entry-level wages?
Using the information given above, the real entry-level wage for the year 2010 will be calculated by using the formula given below as,
Now, for the year 2003,
Now calculating the nominal entry-level wages for the year 2003,
Hence, the 2010 real entry-level wage will be $7.93; the 2003 real entry-level wage is $8.43 and 2003 nominal entry-level wage is $12.01 for college graduates.
Learn more about entry level wage rates here:
Answers
Answer:
The answer is e. the trader who commits to purchasing the commodity on the delivery date.
Explanation:
The long position in a forward position agrees to buy the stock when the contract expires. The long futures position is an unlimited profit, unlimited risk position that can be entered by the futures speculator to profit from a rise in the price of the underlying
Answers
Answer:
$42,700
Explanation:
The presentation of bank reconciliation is shown below:-
Check outstanding in June beginning $15,400
Add: Check issued $64,900
Total check to be cleared $80,300
Less: Check cleared $37,600
The Outstanding amount of checks issued $42,700
b. encounter—where the newcomer learns what the organization is really like; and
c. change and acquisition—where members master important tasks and roles.
d. This process can be achieved through a variety of processes and tactics.
e. This exercise will challenge your understanding of some of the characteristics of these tactics and processes.
Answers
Answer: The correct answers are "a. anticipatory socialization—those activities that take place prior to the first day on the job;", "b. encounter—where the newcomer learns what the organization is really like;" and "c. change and acquisition—where members master important tasks and roles.".
Explanation: The 3 steps or phases of the organizational socialization process are:
1) Anticipatory socialization: those activities that take place prior to the first day on the job;
2) Encounter: where the newcomer learns what the organization is really like;
3) Change and acquisition: where members master important tasks and roles.
Answers
Explanation:
In this case, Sean committed an unprofessional attitude towards the meeting.
Work meetings are essential for the employees of an organization to develop a positive interpersonal relationship through communication and the possibility of integration and contribution to the goals of the company through ideas and points of view.
Therefore, it is essential that each employee has a professional position, avoid using the phone during sessions and see meetings as an opportunity to improve their communication and integration skills with other employees.
It is also important that the employee is involved and engaged to actively participate in the meeting.