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Veronika [31]
3 years ago
7

Barton Corporation acquires a coal mine at a cost of $1,500,000. Intangible development costs total $360,000. After extraction h

as occurred, Barton must restore the property (estimated fair value of the obligation is $180,000), after which it can be sold for $510,000. Barton estimates that 5,000 tons of coal can be extracted. If 900 tons are extracted the first year, which of the following would be included in the journal entry to record depletion? a. Debit to Accumulated Depletion for $275,400 b. Debit to Inventory for $275,400 c. Credit to Inventory for $270,000 d. Credit to Accumulated Depletion for $459,000
Business
1 answer:
Airida [17]3 years ago
7 0

Answer:

The answer is b. Debit to Inventory for $275,400.

Explanation:

We have Depletion base is calculated as:

Acquisition cost + Development cost + Restoration cost - Disposal price = 1,500,000 + 360,000 + 180,000 - 510,000 = $1,530,000

=> Depletion rate per one ton of extracted coal = 1,530,000/5,000 = $306

Amount of Depletion recorded in first year with 900 tons extracted = 306 x 900 = $275,400; which will be recorded in the first year as:

Dr Inventory - coal extracted              275,400

Cr Accumulated Depletion                275,400

=> Thus, (b) Debit to Inventory for $275,400 is the correct choice.

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Answer:

1. The company's profit margin is 13.4% percent.

profit margin = net income / net sales = $45,064 / $336,329 = 13.4%

2. The total asset turnover is 0.82 times.

asset turnover ratio = net sales / average assets = $336,329 / [($387,891 + $432,000)/2] = $336,329 / $409,945.50 = 0.82

3. The equity multiplier is 1.7 times.

equity multiplier = average total assets / average total equity = $409,945.50 / [($205,936 + $275,000)/2] = $409,945.50 / $240,468 = 1.70

4. Using the Du Pont Identity, the company's ROE is 18.68% percent.

ROE = profit margin x asset turnover x equity multiplier (or financial leverage) = 0.134 x 0.82 x 1.7 = 0.1868 = 18.68%

4 0
3 years ago
A country with a relatively low level of real GDP per person is considering adopting two policies to promote economic growth.The
Tomtit [17]

Answer:

The correct answer is: neither the first nor the second would promote growth.

Explanation:

A country with a relatively low level of real GDP per person is considering adopting two policies to promote economic growth.The first is to increase barriers to trade.The second is to restrict foreign portfolio investment.Which of these policies would most economist think would promote growth

One of the main statistical indicators used to measure the economic evolution of a country is the Gross Domestic Product (GDP). In the macroeconomic analysis of any State, the interpretation of this value is essential to know the degree of economic development and its trends.

The weak growth of productivity in many advanced and emerging market economies after the international financial crisis is raising concerns about growth prospects. A new study indicates that reducing barriers to international trade and foreign direct investment (FDI) could stimulate productivity and output.

The entry of portfolio investment into the country is associated with the yield and risk differentials of the country abroad. This means that a change in the perception of country risk is not necessary. Rather, they need to change in relation to existing alternatives in other countries. Therefore, significant movements in this area do not necessarily reflect a change in the state of the country's economy, however, they can have important repercussions on the exchange rate and other fundamental variables of the financial markets.

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If you often commute through urban areas, you may want to _____.
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Answer:

D. Plan your trips to avoid rush hour traffic

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Clancy sells shares in Darling Pool & Spa Company to Eton. Clancy does not deliver the actual possession of the shares to Et
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Answer: constructive delivery

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Such deliveries are a concern for the jury and are usually constituted by them as one needs a third party to study in detail the facts and law relating to the transfer.

Thus, from the above we can conclude that the correct option is B .

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Select all that apply Which of the statements below summarize why a seller would give a sales allowance? (Check all that apply.)
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Answer:

I. In order to entice a customer to keep damaged or defective merchandise, the seller is willing to decrease the selling price.

II. The seller wants to avoid future lost sales.

III. The seller wants to keep a customer happy.

IV. Sold merchandise was defective or unacceptable.

Explanation:

Sales allowance can be defined as a reduction in the price of goods that a seller gives to a customer due to quality issues, incorrect pricing, shipping, etc.

The statements which best summarize why a seller would give a sales allowance are;

I. In order to entice a customer to keep damaged or defective merchandise, the seller is willing to decrease the selling price.

II. The seller wants to avoid future lost sales.

III. The seller wants to keep a customer happy.

IV. Sold merchandise was defective or unacceptable.

5 0
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