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Evgen [1.6K]
3 years ago
5

Alaska Mining Co. acquired mineral rights for $67,500,000. The mineral deposit is estimated at 30,000,000 tons. During the curre

nt year, 4,000,000 tons were mined and sold. a. Determine the amount of depletion expense for the current year. Round the depletion rate to two decimal places. $ b. Journalize the adjusting entry on December 31 to recognize the depletion expense. If an amount box does not require an entry, leave it blank. Dec. 31
Business
1 answer:
Vladimir79 [104]3 years ago
6 0

Answer:

a. Depletion rate  = $2.25

b. Account                                                              Debit($)                Credit($)

Depletion expense                                              9,000,000

Accumulated depletion expense                                                  9,000,000

<u>Being depletion expense for the year.</u>

Explanation:

Depletion expense refers to the loss in value of a long term asset due to reduction in producing capacity  of the asset. The depletion is recognized as an expense in the income statement of the relevant year.

To determine depletion expense, depletion rate is needed which can be derived by dividing the total value of the asset net of its residual value (if any) by the total producing capacity of the asset.After this, the depletion rate is used to multiply the production units of the current year.

Here is the formula for depletion rate:

a. Depletion rate = Total value of the asset - residual value

Total production capacity

Here is the formula for depletion expense

b. Depletion expense = Depletion rate x current year production units  

a. Depletion rate = $67,500,000

30,000,000

Depletion rate = $2.25

b. Depletion expense = $2.25 x 4,000,000

= $9,000,000

Note: Accumulated depletion expense account is the corresponding account for depletion expense account.

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Answer:

<em>Concepts like value and relationship marketing are important in designing a marketing program because such a program is what connects an organization to </em><em><u>it's costumer</u></em>

8 0
2 years ago
Johnson Trucking Company wants to determine a fuel surcharge to add to its customers' bills based on the number of miles driven
BARSIC [14]

Answer:

Variable cost per unit= $1.16 per mile

Explanation:

Giving the following information:

January 16,200 $22,650

February 17000 $23,250

March 18400 $25,450

Apri 16500 $22,875

May 17400 $23,550

June 15300 $21,850

<u>To calculate the variable cost per mile under the high-low method, we need to use the following formula:</u>

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (25,450 - 21,850) / (18,400 - 15,300)

Variable cost per unit= $1.16 per mile

7 0
3 years ago
The parents of a child diagnosed with Tay-Sachs inquire about progression of the disorder. Which statement by the nurse is accur
Anit [1.1K]

Answer:

The correct answer is <em>The child will experince decreased muscular and neurologic functioning until death occurs</em>.

Explanation:

Tay-Sachs disease is a rare degenerative disease that affects the brain and central nervous system and is hereditary, autosomal recessive (more common in descendants of Hebrews).

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5 0
3 years ago
Direct strategies of power are used when: A. one is an expert or has more knowledge. B. one is a novice or has less knowledge. C
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Answer:

(A) one is an expert or has more knowledge.

Explanation:

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3 0
3 years ago
The stock price of Baskett Co. is $53.40. Investors require a return of 12 percent on similar stocks. If the company plans to pa
Gemiola [76]

Answer:

Growth Rate = 5.73%

Explanation:

The present value of stock formula can be used here to solve this problem.

The formula is:

P_0=\frac{Div_1}{r-g}

Where

P_0  is the current stock price

Div_1  is the dividend to be paid next year

r is the rate of return required

g is the growth rate expected

Now, the first 3 variables are given, we need to find g. Substituting, we find our answer:

P_0=\frac{Div_1}{r-g}\\53.40=\frac{3.35}{0.12-g}\\53.40(0.12-g)=3.35\\6.408-53.40g=3.35\\53.40g=3.058\\g=0.0573\\

In percentage, it is

<u>Growth Rate = 5.73%</u>

7 0
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