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Norma-Jean [14]
3 years ago
5

A company acquired mineral rights for $7,500,000. The mineral deposit is estimated at 600,000 tons and during the year 100,000 t

ons were extracted and sold. a. Calculate depletion expense for the year. b. Show the effects on the accounts and the financial statements of the company. c. What is the book value of the mineral rights at the end of the current year
Business
1 answer:
omeli [17]3 years ago
7 0

Answer:

The answer is given below;

Explanation:

a. Depletion Expense for the year  ($7,500,000/600,000)*100,000=$1,250,000

b. The net income and as a results retained earnings  will be reduced $1,250,000

c.    The mineral rights will be reported at $7,500,000-$1,250,000 =$6,250,000

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Answer:

Business Process Re-engineering is business philosophy that seeks to improve product by eliminating causes of product defects and making quality an all-encompassing organizational watchword.

Hence A is correct

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_____ are one of the inputs to manufacturing and service-delivery processes. a. Subassemblies b. Stock-keeping units c. Finished
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Answer:

a. Subassemblies

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Subassemblies are one of the inputs to manufacturing and service-delivery processes. This is because these are small units that need to be assembled separately but then later become part of the final larger manufactured product. Therefore since they are part of the final manufactured product they are an input in the manufacturing process of that larger product needed in order for it to be finished.

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Hugo Inc., a calendar year taxpayer, sold two operating assets this year. The first sale generated a $38,700 Section 1231 gain,
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Answer:

$20,700 ordinary loss

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5 0
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