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yawa3891 [41]
2 years ago
13

Manfred Mining Company is required to restore a piece of land to its original condition after it completes extraction of preciou

s metals. From a financial reporting perspective, the related obligation is referred to as an asset _________.
a. development cost.
b. exploration obligation.
c. retirement obligation.
d. restoration cost.
Business
1 answer:
Yanka [14]2 years ago
4 0

Answer:

D

Explanation:

The term is asset restoration cost,it implies the cost of ensuring the environment where the exploration does is harmless to the residents of the area.

It is normally part of the asset costs from day one.It is expected to be discounted to present value and the discounting factor is applied to the present value each to determine the increase in asset which is added to asset value,in other words by the end of useful life,the asset would have its restoration cost required to restore the site.

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A firm with an A rating plans to issue one million units of a 10 year-4% bond with face value $100. After the financial crisis t
GenaCL600 [577]

Answer:

a)$103.309 million initially b)$83.309 million c)240070 bonds more

Here is the complete question:

A firm with an A rating plans to issue one million units of a 10 year-4% bond with face value $100. After the financial crisis this firm is downgraded to a B rating. The yield curve increases 0.2% per year. The yield for year 1 is y1=1%, for year 2 is y2=1.2%, y3=1.4% and so on and y10=2.8%. The default spreads are given in the table below.

(a) What is the initial amount (before downgrading) the firm wants to raise?

(b) How much can this now B rated firm raise?

(c) If the firm wants to raise the planned amount, how many more bonds does it issue?

Rating Default spread

AAA 0.20%

AA 0.40%

A+ 0.60%

A 0.80%

A- 1.00%

BBB 1.50%

BB+ 2.00%

BB 2.50%

B+ 3.00%

B 3.50%

B- 4.50%

CCC 8.00%

CC 10.00%

C 12.00%

D 20.00%

Explanation: The explanation is found in the attachment

8 0
3 years ago
Brooke and John formed a partnership. Brooke received a 40% interest in partnership capital and profits in exchange for contribu
spin [16.1K]

Answer:

$102,000

Explanation:

According to 26 US code Section 704(c) - Partner's distributive share :

Taxable gain to be recognized from sale = Sale value - ( Partner's share * Fair market value )

Brooke contributed the land, the gain realized before the land was contributed = $120,000 - $90,000 will be allocated entirely to her. She will also be allocated 40% of the gain after the contribution was made = ($150,000 - $120,000) x 40% = $30,000 x 40% = $12,000.

So the total gain recognized by Brooke will be $90,000 + $12,000 = $102,000.

Partnerships are pass through entities, the partners are taxed, not the partnership itself.

3 0
3 years ago
To avoid problems at work you believe you have to adjust to tge truth a little? Agree or Disagree
meriva
I disagree because you should never change the truth just a little because if you do your lying to yourself and everybody else.
8 0
2 years ago
Read 2 more answers
GoSnow sells snowboards. Each snowboard requires direct materials of $128, direct labor of $53, and variable overhead of $63. Th
Fofino [41]

Answer:

Unitary selling price=  $304.93

Explanation:

Giving the following information:

Unitary variable costs:

direct materials of $128

direct labor of $53

the variable overhead of $63.

Fixed costs:

The fixed overhead costs of $301,000

Fixed selling and administrative costs of $229,000

The company has a target profit of $189,800.

Units sold= 11,800 snowboards

First, we need to calculate the total contribution margin required:

Contribution margin= net profit + total fixed expense

Contribution margin= 189,000 + (301,000 + 229,000)

Contribution margin= $719,000

Now, we calculate the total variable expense:

Total variable cost= 11,800* (128 + 53 + 63)

TVC= 2,879,200

Finally, we calculate total sales and the unitary selling price:

Total sales= contribution margin + total variable cost

Total sales= 719,000 + 2,879,200= 3,598,200

Unitary selling price= 3,598,200/11,800= $304.93

6 0
3 years ago
Management at Work While reading the newspaper one day, you come across an article discussing the diversity strategy presented b
Leno4ka [110]

1. Kellogg's is likely to experience Reduced turnover when compared with other companies that do not promote diversity

2. He likely to report about his shares of stock, Since the implementation of the diversity strategy, my shares have increased in value.

Explanation:

Benefits of good diversity management are -

  1. Harmonious working conditions
  2. Better involvement of employees
  3. Improved performance of employees
  4. Improved manufacturing processes
  5. Enhanced product quality
  6. Retained sales (i.e. higher level of employee retention)

Good management of diversity means greater profit and a better brand image.

Turnover is the replacement of an employee with a new hire throughout the realm of human resources. Turnover means a proportion of the employees who leave the company for a certain period of time.

6 0
2 years ago
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