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AfilCa [17]
4 years ago
7

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 $5,640,000. The company expects to extract 940,000 tons of coal during a four-year period. During 2021, 244,000 tons were extracted and sold immediately.
Required:
1. Calculate depletion for 2021.
Business
1 answer:
Setler79 [48]4 years ago
7 0

Answer:

$1,464,000

Explanation:

The computation of the depletion expense is shown below:

Purchase price plus additional cost = $5,640,000

Extracted tons during four year period = 940,000 tons

Current year tons extracted = 244,000 tons

So,

Depletion expense = Purchase price plus additional cost ÷ extracted tons during four year period × current year tons extracted

= $5,640,000 ÷ 940,000 tons × 244,000 tons

= $1,464,000

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creativ13 [48]

Answer:

A. $1,517,648 thousand

Explanation:

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= Cost of goods sold under LIFO - (Ending LIFO reserves - Beginning LIFO reserves)

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4 0
3 years ago
A businesswoman is upset with her husband. She channels this anger into her work and increases her productivity dramatically. Th
MArishka [77]

Answer:

Sublimation

Explanation:

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6 0
3 years ago
The soccer team is planning to sell health bars for a fundraiser. the prices of purchasing health bars from two different compan
stepladder [879]
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7 0
3 years ago
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A capital investment project has the following expected incremental values next year: Revenue $1,000,000 Operating costs 200,000
sattari [20]

Based on the calculation below, incremental after-tax operating cash flow is $675,000

<h3>How to calculate incremental after-tax operating cash flow</h3>

This can be calculated as follows:

Profit before interest and tax = Revenue - Operating costs – Depreciation = $1,000,000 - $200,000 - $300,000 = $500,000

Operating income = Profit before tax – (Profit before tax * Tax rate) = $500,000 – ($500,000 * 25%) = $375,000

Therefore, we have:

Incremental after-tax operating cash flow = Operating income + Depreciation = $375,000 + $300,000 = $675,000

Learn more about cash flows here: brainly.com/question/18301011.

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2 years ago
When a government introduces regulations addressing worker safety and environmental protection, it affects businesses and consum
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