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Vlad [161]
3 years ago
11

Cameron Corp. purchased a mine on January​ 1, 2018, for​$530,000, which is estimated to contain​ 35,000 tons of iron ore. There

is no residual value. The business extracted and sold​ 7,500 tons of ore in 2018 and​ 10,800 tons of ore in 2019. What is the depletion expense for​ 2019? (Round any intermediate calculations to two decimal​ places, and your final answer to the nearest​dollar.)
A.

​$277,062

B.

​$252,838

C.

​$113,550

D.

​$163,512
Business
1 answer:
balu736 [363]3 years ago
7 0

Answer:

D.$163,512

Explanation:

Depletion expense is a charge against profits for the use of natural resources.

Depletion rate = cost to purchase resource/ number of units = $530,000/ 35,000 tons = $15.14 per ton

Depletion expense for 2019 = Depletion rate * number of units extracted and sold in 2019 = $15.14 * 10,800 =  $163,512

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As people become more powerful, they tend to become less goal-oriented, less motivated, and more focused on gaining additional p
Tanya [424]

Answer: False

Explanation:

The statement that as people become more powerful, they tend to become less goal-oriented, less motivated, and more focused on gaining additional power is false.

When people become more powerful, such people become motivated to achieve organizational aims and achieve greater things. Also, they become more empowered which helps in increasing their job satisfaction and morale.

5 0
2 years ago
Orie and Jane, husband and wife, operate a sole proprietorship. They expect their taxable income next year to be $450,000, of wh
docker41 [41]

Answer:

A. 19,800

B. Check answer

Explanation:

In this question, we are asked to calculate or find out two things

Tax payable on $450,000 if they does not incorporate the sole proprietorship and file joint is 108,879.

If they incorporate sole proprietorship and shift $250,000 to it, on balance $200,000 taxable income they pay $36,579 on their individual return and on $250,000 business income at 21% tax payable is $52,500. Thus, total tax payable is $89,079.

By shifting $250,000 income to corporate, they are saving $19,800 in taxes.

b

Their marginal tax rate is 22% once their income crosses $77,400. It is beneficial if they keep $77,400 taxable in their hands and the balance $372,600 in the hands of the corporate at 21%.

3 0
3 years ago
ignoring differences in the useful lives of investments when evaluating capital expenditure alternatives can distort present val
vodka [1.7K]

Answer:

Yes, it does.

Explanation:

It definitely impacts the present value analysis. If we are evaluating two proposals and we ignore the useful lives of the investments, then

  • The present values of the investment proposals will be inaccurate.
  • The cash flows might be inaccurate.
  • The discount factor to be used will also be inaccurate.
  • The overall results will be misleading.
  • The tax credits and balancing allowances and charges will also be inaccurate.
6 0
3 years ago
You need to earn 6% annul real rate of return and, in addition, you need to keep up with the annual inflation rate. Exactly 4 ye
Sever21 [200]

Answer:

"4,000" is the appropriate option.

Explanation:

Given:

Real interest rate,

= 6%

Inflation rate,

= 2%

Annual deposit,

= $20,000

Now,

The nominal interest rate will be:

= Real \ interest \ rate+Inflation \ rate

= 6+2

= 8 (%)

As per the annual deposit, I was making,

= 20000\times 0.6

= 1200 \ every \ year

Inflation rate rise 3% i.e.,

= 2+3

= 5 (%)

Just to earn 1200, I have to:

= \frac{1200}{0.05}

= 24,000

Thus the above is the appropriate answer.

4 0
3 years ago
Great Lakes Packing has two bond issues outstanding. The first issue has a coupon rate of 3.54 percent, a par value of $1,000 pe
grandymaker [24]

Answer:

3.20%

Explanation:

The firm's weighted average aftertax cost of debt can be determined by first of all determining the before-tax cost of each debt.

Using a financial calculator, the before-tax costs of debt are ascertained as follows:

Bond 1:

N=8(number of semiannual coupons in 4 years)

PMT=17.70  (semiannual coupon=face value*coupon rate/2=$1,000*3.54%/2=$17.70)

PV=-1030(current price=$1000*103%=$1030)

FV=1000(the face value is $1000)

CPT

I/Y=1.37%(the semannual yield, annual yield=1.37%*2=2.74%)

after-tax cost of first debt=2.74%*(1-39%)=1.67%

Bond 2:

N=46(number of semiannual coupons in 23  years)

PMT=30.50 (semiannual coupon=face value*coupon rate/2=$1,000*6.10%/2=$30.50)

PV=-950(current price=$1000*95%=$950)

FV=1000(the face value is $1000)

CPT

I/Y=3.26%%(the semannual yield, annual yield=3.26%%*2=6.52%)

after-tax cost of second debt=6.52%*(1-39%)=3.98%

market value of first debt=$3.8 million*103%=$3,914,000

market value of second debt=$8.1 million*95%=$7,695,000

total market value of debts=$3,914,000+$7,695,000=$11,609,000

firm's weighted average aftertax cost of debt=(1.67%*$3,914,000/$11,609,000)+(3.98%*$7,695,000/$11,609,000)

firm's weighted average aftertax cost of debt=3.20%

5 0
3 years ago
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