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natka813 [3]
3 years ago
6

Shale Miner Co. acquired mineral rights for $60,000,000. It is estimated that there are 80,000 tons of the resource; during the

current year, 10,750 tons were mined and sold. What is the amount of depletion for the current year?
a.$8,062,500
b.$100,750
c.$8,000,000
d.$60,000,000
Business
1 answer:
tensa zangetsu [6.8K]3 years ago
3 0

Answer:

a.$8,062,500

Explanation:

The amount of depletion is the percentage of the total value that was already mined during the year. The percentage mined during the year is given by:

\% = \frac{10,750}{80,000} =0.134375

Since the mineral rights were acquired for $60,000,000, the amount of depletion (D) is given by:

D= \$60,000,000 * 0.134375\\D= \$8,062,500

The amount of depletion for the current year is $ 8,062,500

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7 0
3 years ago
Read 2 more answers
Wayne Company's beginning and ending inventories for the month of June were as follows:
ipn [44]

Answer:

d. $487,750

Explanation:

Cost of goods manufactured

<em>Consider only the manufacturing costs</em>

Cost of goods manufactured = $145,000 +  $200,000 +  $ 170,000 + ($5.75 x  25,000) - $171,000

                                                =  $487,750

Note : Only overheads applied $143,750 ($5.75 x  25,000) are added to cost of goods manufactured instead of actual overheads.

Conclusion

the amount of cost of goods manufactured is  $487,750

5 0
3 years ago
The quantity of a good demanded in a given time period increases as the price falls, which is known as:_________
Illusion [34]

Answer:

B) The law of demand

Explanation:

The law of demand states that the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

Ceteris paribus means all things being equal.

Says law says supply creates its own demand.

I hope my answer helps you

4 0
4 years ago
Grand Adventure Properties offers a 7 percent coupon bond with annual payments. The yield to maturity is 5.85 percent and the ma
tensa zangetsu [6.8K]

Answer:

The market price of this bond is: $1,069.8.

Explanation:

To calculate the market price of the bond, we have to use the following formula:

Bond Price= C*((1-(1+r)^-n)/r)+(F/(1+r)^n)

C= periodic coupon payments: $1,000*7%= $70

F= Face value: $1,000

r= Yield to maturity: 5.85%

n= No. of periods until maturity: 8 years

Bond Price= 70*((1-(1+0.0585)^-8)/0.0585)+(1,000/(1+0.0585)^8)

Bond Price= 70*((1-0.635)/0.0585)+(1,000/1.58)

Bond Price= 70*6.24+633

Bond Price= 436.8+633

Bond Price= 1,069.8

7 0
3 years ago
Doubling the circumference of an oil pipeline more than doubles the volume of oil that can be pumped through. This strategy is c
Alika [10]

Answer:

Economies of scale

Explanation:

Economies of scale is described as the cost benefit or advantage which is experienced through the firm, when it rises the output level. Under economies of scale, the fixed costs did not vary or change with decreases or increases in the units of the production volume and the variable costs are dependent with rise in the output.

So, in this case, when the circumference is doubled of the oil pipeline, more than the volume doubles. This technique is selected through the large firms or business as it will result in the economies of scale.

4 0
3 years ago
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