Answer:
depletion expense for 2018 6,019.18
Explanation:
$526,000 cost
1,031,000 tons
We have a cost(the mine) which is associate with an asset available, that will be depleted over time (iron ore)
So we have to distribute this cost at the rate this asset is being depleted:
cost/tonds of iron ore = depletion per ton
526,000/1,031,000 = 0.5101
Then we multiply this rate by the extracted amount of 2018
depletion expense for 2018
0.5101 x 11,800 = 6,019.18
Answer:
D) Even with an absolute advantage, the United States would have benefited from importing those products for which Britain had a comparative advantage.
Explanation:
The basis for foreign trade are comparative advantages, not absolute advantages. You must remember that in order for trade to be effective and long lasting, both sides must benefit from it, not just one side.
Resources are limited, and that applies to everyone, to every corporation and to every country. You might have an absolute advantage at producing everything, but your production possibilities frontier sets you a limit on what products or combination of products you can produce. Sometimes it might be beneficial to trade and receive some products that you could produce more efficiently, but their opportunity costs might be too high. Probably you can get them at lower costs from foreign suppliers and use those resources for producing something else.
Answer:
You can sell the bond for $1,008.78 today
Explanation:
We need to calculate current value of the bond & its coupon
Face value: $1,000
Left tenor: 20 years (= 30 years to maturity - 10 years ago)
Coupon rate: 5%
Yield to maturity: 4.93%
Total coupon to be paid every year= $1,000* 5% = $50
To calculate the current value of coupon received in every of 20 years, we use formula PV in excel or manually as below:
PV = 50/(1+4.93%)^20 + 50/(1+4.93%)^19+.... +50/(1+4.93%)^1 = $626.83
The current value of face value after 20 years = $1,000/(1+4.93%)^20 = $381.95
So the value of bond = $626.83 + $381.95 = $1,008.78
Answer:
$205,150 is the total of the both sides of the adjusted trial balance.
Worksheet with proper working has been attached.
Explanation:
<u>Transaction a:
</u>
Debit: Supplies expense $4,850
Credit: Supplies $4,850
<u>Transaction b:
</u>
Debit: Insurance expense $1,625
Credit: Prepaid insurance $1,625
Tip: Insurance that is expired is removed from prepaid insurance and debited to the insurance expense.
<u>Transaction c</u>
Debit: depreciation expense $1,400
Credit: accumulated depreciation $1,400