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finlep [7]
3 years ago
11

On January 1, Year 1, Gemstone Mining Company (GMC) paid $10,500,000 cash to purchase the rights to extract raw stone from a sur

face pit estimated to hold 50,000 pounds of useable material. GMC extracted 10,000 pounds of stone in Year 1, 20,000 pounds of stone in Year 2, and 25,000 pounds of stone in Year 3. The rights to the surface pit were expected to have a $500,000 salvage value at the end of Year 3.
Required:
1. Based on this information, the amount of depletion expense shown on the Year 3 income statement is _________.
Business
1 answer:
anyanavicka [17]3 years ago
4 0

Answer:

The amount of depletion  charge in year 3 income statement is $4,000,000

Explanation:

The depletion charge  would be based on volume of stone extracted on yearly basis.

The depletion charge=cost-salvage value/(total volume of stone)

The depletion charge=($10,500,000-$500,000)/50,000

The depletion charge=$200 per pound

In year one depletion charge =$200*10000 pounds

                                                      =$2,000,000

In year two, depletion charge=$200*20000 pounds

                                                      =$4,000,000

In year three, depletion charge=$200*25000 pounds

                                                        =$5,000,000

The year 3 depreciation charge is restricted to the balance of the depletion amount of $10 million

Balance of depletion amount=$10,000,000-$2000,000(year one)-$4000,0000(year two)

Balance of depletion amount=$4,000,0000

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If during 2009, the country of Sildavia recorded a GDP of $65 billion, interest payments of $15 billion, imports of $13 billion,
Maslowich

Answer:

36 billion

Explanation:

The GDP can be calculated using the income approach in which the output of a country is equal to the total income people receive in that country.

GDP= Compensation of employees + Net interest + Rental income + Corporate profits

From this formula, you can isolate the compensation of employees:

Compensation of employees= GDP-Net interest - Rental income - Corporate profits

Compensation of employees= $65-$15-$7-$7

Compensation of employees= $65-$29

Compensation of employees= $36

The wages during 2009 in Sildavida were: $36 billion.

8 0
3 years ago
14. Over a given year, nominal GDP increased by about 2.5%. Over that year, the GDP deflator decreased by about 4%. From this in
Mama L [17]
The answer is 1,009 and thats your answer
8 0
2 years ago
Anderson Manufacturing​ Co., a small fabricator of​ plastics, needs to purchase an extrusion molding machine for ​$180 comma 000
vlabodo [156]

Answer:

1st     46,398.83

2nd    49,646.74

3rd      53,122.02

4th      56,840.56

5th       60,819.40

Explanation:

given a growing annuity we have to solve for the installement

FV = \frac{1-(1+g)^{n}\times (1+r)^{-n} }{r - g}

FV = PV (1+r)^5 = 180,000 x 1.14^5 =  346,574.62  

grow rate 0.07

interest rate 0.14

n = time     5

346,574.62 = C  \times \frac{1-(1+0.07)^{5}\times (1+0.14)^{-5} }{0.14 - 0.07}

C = 46398.8284

Now, to determiante the subsequent payment we multiply by the grow rate of 1.07

6 0
3 years ago
A _____________ is a company that has a proven business model and is willing to sell the rights to use the business model to oth
scoundrel [369]

Answer: Franchise

                       

Explanation: In simple words, a franchise refers to an arrangement under which one entity allows other entity to use its business models, procedures and intellectual properties etc, in return of any loyalty or other such benefit.

This is a common arrangement nowadays and is usually used by the organisations to operate their business globally.

Hence from the above we can conclude that the correct answer is franchise.

6 0
3 years ago
A coffee distributor needs to mix a(n) Costa Rican coffee blend that normally sells for $9.50 per pound with a Kenya coffee blen
snow_tiger [21]

Answer:

5,11 pounds of Costa Rican coffee and 64,89 pounds of Kenya coffee

Explanation:

First, we need to know the proportion of every coffee in the mix trying with different percentages until getting the result of $13,49  

 

($9,50*25%)+($13,80*75%)=$12,73  

 

($9,50*10%)+($13,80*90%)=$13,37  

 

($9,50*7,5%)+($13,80*92,5%)=$13,48  

 

($9,50*7,3%)+($13,80*92,7%)=$13,49  

 

So, the percentage of Costa Rican coffee is 7,3% and Kenya coffee is 92,7%  

And we can get the pounds required to get 70 pounds  

 

70*7,3%=5,11

 

70*92,7%=64,89

   

We need 5,11 pounds of Costa Rican coffee and 64,89 pounds of Kenyan coffee to create 70 pounds of mixed coffee that can sell for $13,49 per pound  

8 0
3 years ago
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