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Alex_Xolod [135]
4 years ago
12

Pittsburg Resources acquired a coal mine for $6,000,000. The company’s survey estimates that 120,000 tons of coal can be extract

ed from the mine. In the first year of operations, 25,000 tons of coal was extracted, and the coal is considered sold immediately upon extraction.
Required:

1. Calculate depletion for the first year.

2. Discuss the accounting treatment of the depletion calculated in requirement 1.
Business
1 answer:
Yuri [45]4 years ago
7 0

Answer:

The answer is given below;

Explanation:

1.$6,000,000/120,000=$50*25,000=$1,250,000

2.this method is called units of digits method for depletion.

The accounting treatment shall be;

Depletion Expense    Dr.$1,250,000

Accumulated Depletion  Cr.$1,250,000

When the asset will retire, the accumulated depletion will be eliminated with corresponding effect to mine                        

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A local Best Buy sells 8 times as many iPods as Sears. The difference between their sales is 490 iPods. How many iPods did each
defon

Answer:

  • <u>Best Buy sells 560 iPods</u>
  • <u>Sears sells 70 iPods</u>

Explanation:

You may set a system of equations.

<u>1. Name the variables: </u>

  • B= <em>number of iPods</em> sold by <em>Best Buy</em>
  • S =<em> number of iPods</em> sold by <em>Sears</em>

<u>2. Translate every verbal statement into a mathematical expression</u>

a) <em>A local Best Buy sells 8 times as many iPods as Sears</em>.

  • B = 8S

b)  <em>The difference between their sales is 490 iPods</em>.

  • B - S = 490

<u>3. Solve the system of equations</u>

a) Substitute B = 8S into the second equation

  • 8S - S = 490

b) Add like terms

  • 7S = 490

c) Divide both sides by 7

  • S = 70

d) Substitue S = 70 into B = 8S

  • B = 8(70) = 560

<u>Solution:</u>

  • Best Buy sells 560 iPods
  • Sears sells 70 iPods
3 0
3 years ago
You have just purchased a new warehouse. To finance the purchase, you've arranged for a 25-year mortgage for 80 percent of the $
Ahat [919]

Answer:

  • <u><em>7.67%</em></u>

Explanation:

Monthly payments from <em>mortgages</em> are calculated with the compounding montly interest rate.

Thus, you can "calculate" the monthly rate and the multiply by 12 to obtain the <em>APR</em> (annual percentage rate).

The equation for the <em>monthly payment </em>is:

Monthly\text{ }Payment=Loan\times \bigg[\dfrac{r(1+r)^t}{(1+r)^t-1}\bigg]

  • Loan = 80% × $1,800,00 = $1,440,000
  • Monthly payment = $10,800
  • t = number of months = 25 × 12 = 300

Substitute:

      \$10,800=\$1,440,000\times \bigg[\dfrac{r(1+r)^{300}}{(1+r)^{300}-1}\bigg]

You must find r but it is very difficult to make it the subject of the equation; thus, the best is to do succesive calculations:

Tests:

          r                     monthyly payment

  • 0.01                       $15,166.43     > $10,800 ⇒ lower
  • 0.005                    $ 9,277.94    < $10,800 ⇒ increase
  • 0.006                    $10,362.08    pretty close; increase a little bit
  • 0.00639059         $10,800          ↔ this is the number

Multiply the rate by 12 (to obtain the APR): 0.00639059 × 12 = 0.07668708 = 7.67%.

  • APR = 7.67% ← answer
5 0
4 years ago
From the lessee's perspective, in the earlier years of a lease, the use of the:
djverab [1.8K]

b

Explanation:

From the lessee's perspective, in the earlier years of a lease, the use of the:

capital method will cause debt to increase, compared to the operating method.Therefore option b is correct. As in early years of lease operating method is far more beneficial then the capital method.

5 0
3 years ago
Suppose that you are hired by a producer of wooden pallets to determine what sort of competition the firm faces. Due to a accide
gulaghasi [49]

During this week of low production, the price for pallets does not change at all. Given this observation this firm likely faces Oligopoly. Below is further explanation on Oligopoly.

<h3>What is Oligopoly?</h3>

An oligopoly is a market featured by a small number of firms who realize they are interdependent in their pricing and output policies. The number of firms is small enough to give each firm some market power.

Therefore, the correct answer is Oligopoly.

learn more about Oligopoly: brainly.com/question/13658628

#SPJ1

4 0
3 years ago
(Scenario 8-4) Within various sections of the ____ portion of its advertising plan, American Express explains how and why Visa h
KatRina [158]

Answer: situation analysis

Explanation:

6 0
3 years ago
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