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Lelu [443]
3 years ago
5

Miller Mining, a calendar-year corporation, purchased the rights to a copper mine on July 1, Year 1. Of the total purchase price

, $2.8 million was appropriately allocable to the copper. Estimated reserves were 800,000 tons of copper. Miller expects to extract and sell 10,000 tons of copper per month. Production began immediately. The selling price is $25 per ton. Miller uses percentage depletion (15%) for tax purposes. To aid production, Miller also purchased some new equipment on July 1, Year 1. The equipment cost $76,000 and had an estimated useful life of 8 years. After all the copper is removed from this mine, however, the equipment will be of no use to Miller and will be sold for an estimated $4,000. If sales and production conform to expectations, what is Miller’s depreciation expense on the new equipment for financial accounting purposes for the Year 1 calendar year?
a. $10,800
b. $5,400
c. $9,000
d. $4,500
Business
1 answer:
Mashcka [7]3 years ago
8 0

Answer:

d. $4,500

Explanation:

The computation of depreciation expense on the new equipment is shown below:-

For computing the depreciation expense on the new equipment first we need to find out the Depreciation per annum which is here below:-

Depreciation per annum = (Cost - Residual value) ÷ Life

= ($76,000 - $4,000) ÷ 8

= $72,000 ÷ 8

= $9,000

Depreciation for 1 year calendar (July 1 to Dec 31) = Depreciation per annum × 6 months ÷ Total number of months in a year

= $9,000 × 6 ÷ 12

= $4,500

So, the depreciation expenses for the year end up-to 31st Dec is $4,500

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Sheridan Company has the following inventory data: July 1 Beginning inventory 36 units at $19 $684 7 Purchases 126 units at $20
Alexeev081 [22]

Answer:

$2436

Explanation:

LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.

total goods sold = (total inventory purchased + beginning inventory) - 60

(36 + 126 + 18) - 60

180 - 60

= 120

the 120 units sold would be taken from the inventory purchased on the 22nd and 7

(18 x 22) + [(120 - 18) x 20]

396 + 2040 = 2436

7 0
2 years ago
our grocery store in India is having trouble getting the local farmers to supply you with the proper produce. This is a problem
nadezda [96]

Your grocery store in India is having trouble getting the local farmers to supply you with the proper produce. This is a problem with India's resource market.

<h3>What is the resource market?</h3>

The term "resource market" refers to a market that provides goods and services to businesses, organizations, and firms in exchange for money. Markets that offer firms the resources they require to deliver the products or services they offer are known as resource markets.

One of the three main categories of macroeconomic markets is the resource market, sometimes known as the factor market. Financial markets and product markets are the other two. The macroeconomic analysis of full employment and unemployment must take into account resource markets.

firms demand the resources that maximize profit and households supply the resources that maximize utility.

To know more about resource market refer to: brainly.com/question/18310262

#SPJ4

4 0
2 years ago
On January 1, 2013, Ameen Company purchased a building for $36 million. Ameen uses straight-line depreciation for financial stat
Amiraneli [1.4K]

Answer:

1.Dr Income Tax Expense 22

Cr Income Tax Payable 16

Cr Deferred Tax Liability 6

2.Net Income of Ameen in 2016 = $23

Explanation

1.Preparation of the appropriate journal entry to record Ameena 2016 income taxes

Calculation for Pretax accounting income

Pretax accounting income = $45

Less:Excess Depreciation as per tax = ($5)

($20-$13)-($30-$28)

$7-$5

=$5

Taxable Income = $40

Income tax for the year = 40 × 40%

Income tax for the year= $16

Calculation for Deferred Tax Expense for the year 2016

Deferred Tax Expense for the year 2016 = ($28 - $13) ×40%

Deferred Tax Liability= $15 ×40%

Deferred Tax Liability= $6

Calculation for Income Tax Expense

Income Tax Expense = $16 + $6

Income Tax Expense= $22

Therefore the appropriate journal entry to record Ameena 2016 income taxes will be:

Dr Income Tax Expense $22

Cr Income Tax Payable $16

Cr Deferred Tax Liability $6

2. Calculation for Ameen 2016 net income

Net Income

Accounting Income of Ameen = $45

Less: Total Tax Expense = ($22)

Net Income of Ameen in 2016 = $23

Therefore the Net Income of Ameen in 2016 will be $23

3 0
2 years ago
Strum Services provides content management services to major educational publishers. Due to low morale, the level of employee ou
artcher [175]

Answer:

The correct answer is letter "A": The company is on a tight deadline to complete a major project for an important client.

Explanation:

Coercion is the act by which a party forces to act another against its will because of a threat or an adverse situation. In the case given, as employees are underperforming, executives might find and excuse in an upcoming deadline of a major project for an important client to urge employees to hurry up in their jobs, otherwise the goal will not be met.

8 0
3 years ago
A subtle form of racial discrimination in housing is "racial steering." racial steering occurs when real estate agents show pros
anzhelika [568]
The table represented below is how the people were divided in the household.

As you can see, the white people have more privileged to stay in the household. And the consistency of having the black people rented are of minimum. This violates the policy because of it's unfair system to the people and the division of the homes.

3 0
3 years ago
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