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8090 [49]
3 years ago
9

Quarry Corp. has the following costs related to a mine it acquired this year. Cost of land and natural resource rights $200,000

Asset retirement obligation to restore land 50,000 Costs of extraction during year 1 35,000 Equipment used for mining 100,000 Exploration and drilling costs to prepare quarry for extraction 40,000 What amount should be included as an asset for natural resources
Business
1 answer:
frozen [14]3 years ago
8 0

Answer:

$375,000

Explanation:

The computation of the amount included in the natural resource is shown below:

= Cost of land & natural resource rights + cost of extraction during year + equipment used for mining + exploration & drilling cost

= $200,000 + $35,000 + $100,000 + $40,000

= $375,000

Hence, all the cost is inlcuded for natural resource except asset retirement obligation for restoring the land as this is not relevant so we ignored it

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The XYZ Chemical Company must ship 9,500 gallons of pesticides from its plant in Cincinnati, Ohio, to a customer in Columbia, Mi
never [62]

Answer:

Henderson  = $1,200

Central States = $1,000

Based on the calculations, Central States Railroad is better at a lower cost than Henderson

Explanation:

The question is to do an evaluation of the costs of use Henderson Bulk Trucking Company or the Central States Railroad

Step 1) Determine the cost of using Henderson

What is the cost per tank  truck = $600

What is the capacity in gallons = 700 galloons

However, since XYZ Chemical needs to ship 9,600 gallons, it means it will make use of 2 trucks from Henderson as follows

The cost of Henderson Bulk Trucking = $600 x 2 = $1,200

Step 2) Determine the cost of using Central Railroad

What is the cost per tank  truck = $1000

What is the capacity in gallons = 23,500 galloons

since XYZ Chemical needs to ship 9,600 gallons, it means it will make use of only one of the trucks

The cost of Central Roilroad= $1000 x 1 = $1,000

Based on the calculations, Central States Railroad is better at a lower cost than Henderson

3 0
3 years ago
32,500 shares of common stock outstanding at a price per share of $80 and a rate of return of 12.95 percent. The firm has 7,350
pashok25 [27]

Answer:

WACC = 11.1%

Explanation:

The weighted Average cost of Capital is the average cost of capital for the different sources of long-term capital available to a firm weighted according to the proportion each source of finance bears to the total capital in the pool.

<em>Market of securities</em>

Common stock =  $80 × 32,500=  2,600,000.  

Preferred stock = $95.50 ×  7,350=   701,925.00  

Bond = 407,000/100 × 111.5= 453,805.00  

<em>Cost of each capital type</em>

Common stock= 12.95

Preferred stock = (7.90%× 100)/95.50= 8.3%

Bond= 8.11%× (1-0.4)=4.87%

<em>WACC</em>

Type                      Market Value          Cost           Market value  cost

Common stock   2,600,000.              12.95%         336,700.00  

Preferred            701,925.00              8.3%             58,065.00  

Bond                   4<u>53,805.00  </u>           4.87%            <u>22,100.30 </u>

Total                    <u>3,755,730.00</u>                               <u>  416,865.30</u>  

WACC = (416,865.30  / 3,755,730.00) ×  100

       = 11.1%

WACC = 11.1%

4 0
3 years ago
On April 1, Pujols, Inc., exchanges $590,000 fair-value consideration for 70 percent of the outstanding stock of Ramirez Corpora
Svet_ta [14]

Answer:

Closing NCI = $234,300 + $69,000 = $303,300

Explanation:

The Question is to identify the non-controlling interes in Ramirez Corporation

First we determine the Net income of Ramirez

Net Income = Revenues - Expenses

= $635,000 - $405,000 = $230,000

The next step is to dtermine the value of non -controling interest in teh net income of Ramirez.

Non-Controlling Interest in Net Income = NCI percentge x Net Income

= 30% x $230,000 = $69,000

Finally, based on these calculations , we can compute the Closing Balance of Non-Controlling Interest

The formula = Opening Non-Controlling Interest + Non-controlling Interest Share of Net income

Closing NCI = $234,300 + $69,000 = $303,300

3 0
3 years ago
Activities in the business modeling discipline and the ____ discipline are primarily concerned with building models of the organ
Oxana [17]

Answer:

The correct answer is Requirements.

Explanation:

The purpose of the requirements discipline is:  

Establish and maintain an agreement with customers and other stakeholders about what the system should do.

Provide system developers with a good understanding of system requirements. Define the limits of the system (delimit it).

Provide a basis for planning the technical content of the iterations.

Provide a basis for estimating the cost and time to develop the system.

Define a user interface for the system, focusing on the needs and goals of the users.

To achieve these objectives, it is important, first of all, to understand the definition and scope of the problem that the system is trying to solve. Stakeholders are identified and stakeholder requests are obtained, gathered and analyzed.

From there, the work products of the requirements are developed to fully describe the system (what the system is going to do) in an effort that perceives all stakeholders, including customers and potential users, as important sources of information ( in addition to the system requirements).

3 0
3 years ago
Daube Company's operations for the month of July are summarized as follows: Provided $8,600 of services on account. Received $3,
Norma-Jean [14]

Answer: See explanation

Explanation:

a. Determine the net income for July using the cash basis of accounting.

Revenue = $3800 + $1100 + $5100 = $10000

Less: Expense = $1200

Net Income = $10000 - $1200 = $8800

b. Determine the net income for July using the accrual basis of accounting.

Revenue = $8600 + $3800 = $12400

Less: Expense = $1300

Net income = $12400 - $1300 = $11100

8 0
3 years ago
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