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lbvjy [14]
3 years ago
5

On April 17, 2021, the Loadstone Mining Company purchased the rights to a coal mine. The purchase price plus additional costs ne

cessary to prepare the mine for extraction of the coal totaled $4,280,000. The company expects to extract 1,070,000 tons of coal during a four-year period. During 2021, 257,000 tons were extracted and sold immediately.
Required:
1. Calculate depletion for 2021.
2. Is depletion considered part of the product cost and included in the cost of inventory?
Business
1 answer:
nata0808 [166]3 years ago
5 0

Answer:

1. The depletion for 2021 is $1,028,000 .

2. No, depletion is not considered part of the product cost and isnt included in the cost of inventory

Explanation:

1. Depletion per ton = $4280000/1070000

                                  = $4 per ton

Depletion for 2021 = 257000 tons*$4

                                = $1,028,000

Therefore, The depletion for 2021 is $1,028,000 .

2. Depletion is not considered as part of product cost, It is shown as expense on income statement and reduced from the value of natural resource and so it is equivalent to depreciation of assets.

Therefore, No, depletion is not considered part of the product cost and isnt included in the cost of inventory

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The Reading Co. has adopted a policy of increasing the annual dividend on its common stock at a constant rate of 3 percent annua
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Answer:

$1.07

Explanation:

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7 0
3 years ago
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5                   12.36%              ((5-1)/(40-1)*0.1024)+((40-5)/(40-1)*0.126)

10                   12.06%             ((10-1)/(40-1)*0.1024)+((40-10)/(40-1)*0.126)

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The formula for the return on assets is calculated by dividing the net income by the total average assets. The profit margin and total asset sales can also be represented as a consequence of this ratio. For the calculation of the total asset return, either formula may be used.

7 0
3 years ago
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Answer:

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Answer:

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Less: Savings                                 (18,000)                              (18%)

Less: Mortgage Payments         (18,000)                              (18%)

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