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LUCKY_DIMON [66]
3 years ago
5

Coronado Corporation acquires a coal mine at a cost of $448,000. Intangible development costs total $112,000. After extraction h

as occurred, Coronado must restore the property (estimated fair value of the obligation is $89,600), after which it can be sold for $179,200. Coronado estimates that 4,480 tons of coal can be extracted. If 784 tons are extracted the first year, prepare the journal entry to record depletion.
Business
1 answer:
SSSSS [86.1K]3 years ago
8 0

Answer:

Dr Depletion expense 66,640

Cr Accumulated depletion 66,640

Explanation:

Coronado Corporation

Journal entry

Dr Depletion expense 66,640

Cr Accumulated depletion 66,640

Total Cost = $448,000+$112,000 =

$ 560,000

Depletion per ton

= ($560,000-$179,200)/4,480

= 85 per ton

Depletion first year = 784*85 = 66,640

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Ivahew [28]

Answer:

1- Walmart wanted global expansion and it availed the opportunity to expand its business by entering Indian market, however the Indian market is far different than the US market that is why a joint-venture was required to enter the different market as Bharti Enterprises was already operating in Indian market.

2- To enter a new market Joint-venture will be suitable because:

In acquisition the investor acquires all the shares of an existing organisation in this way the investor will not be able to operate with the same name as in other markets as the organisation whose shares are purchased already will have a name which if changed all the goodwill will be lost. In a Joint venture the investor and a local investor invests together to form a different organisation, in this method the organisations jointly own a newly formed organisation in which they both jointly decide the name and the local investor have knowledge about the local market which can be helpful if the customer taste is different than the investors market. In a Greenfield investment the investor purchases shares and bonds of an organisation already operating in the targeted market, in this way the investor will not be able to operate with the same name as in other markets as the organisation whose shares are purchased already will have a name which if changed all the goodwill will be lost.

Explanation:

1- Walmart wanted global expansion and it availed the opportunity to expand its business by entering Indian market, however the Indian market is far different than the US market that is why a joint-venture was required to enter the different market as Bharti Enterprises was already operating in Indian market.

2- To enter a new market Joint-venture will be suitable because:

In acquisition the investor acquires all the shares of an existing organisation in this way the investor will not be able to operate with the same name as in other markets as the organisation whose shares are purchased already will have a name which if changed all the goodwill will be lost. In a Joint venture the investor and a local investor invests together to form a different organisation, in this method the organisations jointly own a newly formed organisation in which they both jointly decide the name and the local investor have knowledge about the local market which can be helpful if the customer taste is different than the investors market. In a Greenfield investment the investor purchases shares and bonds of an organisation already operating in the targeted market, in this way the investor will not be able to operate with the same name as in other markets as the organisation whose shares are purchased already will have a name which if changed all the goodwill will be lost.

4 0
3 years ago
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Answer:

d. $75,000

Explanation:

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sp2606 [1]

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0                      -37,500                      -37,500

1                         17,300                         5,700

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1) Using an excel spreadsheet and the IRR function:

IRR project A = 20%

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2) Using the IRR decision rule, Bruin should choose project A.

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2     $3,300

3    -$2,500

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