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hodyreva [135]
3 years ago
14

holds huge reserves of oil. Assume that at the end of 2017​, South Shore Petroleum​'s cost of oil reserves totaled $ 252 comma 0

00 comma 000​, representing 180 comma 000 comma 000 barrels of oil. Suppose South Shore Petroleum removed and sold 12 comma 000 comma 000 barrels of oil during 2018. Journalize depletion expense for 2018.
Business
1 answer:
bixtya [17]3 years ago
4 0

Answer:

Depletion expense is $16,800,000

Explanation:

2018 depletion expense=total oil reserves cost*quantity removed/total reserves

total oil reserves cost is $252,000,000

quantity removed in 2018  12,000,000 barrels

total oil reserves is  180,000,000 barrels

2018 depletion expense =$252,000,0000*12,000,0000/180,000,000

                                        =$16,800,000

The depletion expense to charge  against revenue in 2018 in order to arrive at net income is $16,800,000

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Beta Company leased equipment from Summer Industries. The lease agreement qualifies as a finance lease and requires annual lease
Tamiku [17]

Answer:

Total increase in pretax earnings on Summer’s December 31, 2019, income statement is $20,253

Explanation:

Fair value of asset sold on lease = Present value of lease payments = $50,000 * Cumulative PV factor at 6% for 8 periods of annuity due

= $50,000 * 6.20979

= $310,490

Interest income for 2019 = ($310490 - $50,000) * 6% = $15,629

Total increase in pretax earnings on Summer’s December 31, 2019, income statement = $310490 - $300,000 + $15,629 - 5866 = $20,253

3 0
3 years ago
A holder of Rainbow Funds convertible bonds with a $1,000 par and a $1,100 price can convert the bond to 25 shares of common sto
omeli [17]

Answer:

22.22%

Explanation:

Currently Rainbow's stocks are priced at $36 per stock.

If the holder can convert his $1,100 bond into 25 stocks, that means that each stock should be worth at least $44 (= $1,100 / 25).

So the current stock price should increase by $8 (= $44 - $36) in order for a trade to be attractive, $8 represents a 22.22% increase (= ($8 / $36) x 100)

7 0
3 years ago
Which of the following identifies a change in the technological environment that could affect the success of a business?
podryga [215]

The statement that identifies a change in the technological environment that could affect the success of a business is option B. The option B is A company develops a new battery that lasts twice as long as its predecessor.

The development of technology is currently running so rapidly, unconsciously maybe every day technology develops. In this day and age, technology is very important for humans, so that it can be said that human life today cannot be separated from technology. The rapid development of technology has made almost all human work easier because almost all human work is assisted by technology. Day by day, technology is more varied, more innovative, more able to help human work. The development of this technology brings so many positive impacts, but technology also has a negative impact.

The following is the impact of technological developments on business:

  • Speed ​​up the production and distribution process
  • The exchange and delivery of information becomes easier and faster
  • Make it easier to get information related to finance, competitors, consumer tastes, and target market
  • Make it easier to expand your business
  • Make it easy in terms of promotion
  • Make transactions easier because of digital payments

You can learn more about development of technology here brainly.com/question/13743788

#SPJ4

8 0
1 year ago
Slide presentations are user friendly for which of the following reasons?
fomenos
I have this class on apex the correct answer is "C"
5 0
3 years ago
Read 2 more answers
Popped! is a specialty popcorn store. It offers two varieties of popcorn:
Ulleksa [173]

Answer:

Plain = 450 per month

Flavored = 1800 per month

Explanation:

We will calculate the breakeven in composite units first and then separate the into both products to find out individual number of both products that needs to be sold to break even.

The breakeven in units = Fixed cost / composite contribution margin

The composite contribution margin per unit = Contribution of Product 1 * weight of product 1 + Contribution of product 2 * weight of product 2

Thus, the composite contribution margin (CM) per unit for Popped is,

CM per unit-composite units = (2-0.8) * 1/5 + (4-2.5) * 4/5 = $1.44 per unit

The breakeven in units = 3240 / 1.44 = 2250 units per month

Out of this,

Plain = 2250 * 1/5 = 450 unts

Flavored = 2250 * 4/5 = 1800

4 0
3 years ago
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