Answer:
a. $750,000
Explanation:
We can compute the depletion expense by dividing investment by total available capacity of the coal mine. We charge the full investment as there is no salvage value.
Depletion expense = 15 / 20 = $0.75 million per million tons.
Total extracted coal = 1,000,000
so depletion expense for the first year = 1,000,000 * 0.75 = $750,000
We calculated depletion as we would any depreciation and charge it on activity basis which is the amount of coal extracted.
Hope that helps.
Answer:
The total expense to educate the students at Webster Elementary School is currently changing per year = $2564
Explanation:
Given - There are currently 487 students enrolled in Webster Elementary School, and the number of students is decreasing at the rate of 16 students per year. Currently the annual expense to educate one student is $1,256, and the expense to educate one student is increasing at the rate of $36 per year.
To find - Use the product rule to determine the rate at which the total expense to educate the students at Webster Elementary School is currently changing per year.
Proof -
Total number of students = 487
Students decreasing rate per year = 16 students
Annual expense to educate 1 student = $ 1256
The increasing rate for 1 student per year = $ 36
Now,
Total increasing cost = 487 × 36 = $ 17532
Now,
Total cost of decreasing students per year = $ 1256 ×16 = $ 20096
Now,
Rate of change = $ 20096 - $ 17532 = $2564
∴ we get
The total expense to educate the students at Webster Elementary School is currently changing per year = $2564
Answer:
The court gave judgement against Dean because of fraud.
Explanation:
In the context, it is given that General Electric did business with Dean Appliances. Now Deans's Appliance was sold to Smitty's Appliance, Inc., to which Geneal Electric was unaware.
Smitty hired Dean as his manager and now Dean ordered appliances from General Electric as earlier he had done. But Smitty refused to pay when the invoice came due saying that Smitty did not authorized Dean to make those orders.
General Electric sues Smitty and Dean personally. The most likely outcome of the lawsuit is that the court punishes Dean for breaching and doing fraud with both Smitty and General Electric. Dean is found guilty.
Answer:
$8,700
Explanation:
Dividends payable to preferred shareholders = [($430,000*7%)*2 - ($23,000*2)] + ($430,000*7%)
Dividends payable to preferred shareholders = [$60,200 - $46,000] + $30,100
Dividends payable to preferred shareholders = $14,200 + $30,100
Dividends payable to preferred shareholders = $44,300
Dividend available to common shareholders = Total dividend - Dividends payable to preferred shareholders
Dividend available to common shareholders = $53,000 - $44,300
Dividend available to common shareholders = $8,700
So, the amount of dividends common shareholders will receive in 2021 is $8,700.
Answer:
Explanation:
Terminal or horizon date is a point in time where a company's dividend experiences a constant growth rate.
In this case, it is mentioned that non-constant growth rate of 20% will happen for first two years and thereafter, a constant rate of 5%; this means that
D1= 1.25(1.20) =1.5
D2 = 1.5 (1.20)= 1.8
Then starting at D3, there's a constant growth rate = 5% so,
D3 = 1.8 (1.05)= 1.89
D4 = 1.89(1.05)= 1.9845
D5 = 1.9845 (1.05) = 2.0837
.....and so on
Therefore, the horizon date would be at the end of the second year i.e. End of Year 2.