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NeTakaya
2 years ago
5

Everly Corporation acquires a coal mine at a cost of $400,000. Intangible development costs total $100,000. After extraction has

occurred, Everly must restore the property (estimated fair value of the obligation is $80,000), after which it can be sold for $160,000. Everly estimates that 4,000 tons of coal can be extracted.
Business
1 answer:
Anni [7]2 years ago
5 0

Answer:

Explanation:

The journal entry is shown below:

Inventory A/c Dr $73,500

       To Accumulated depletion A/c $73,500

(Being the depletion is recorded)

The computation is shown below

First we have to compute the depletion per ton which is shown below:

= (Acquired cost of coal mine +  Intangible development costs + fair value of the obligation - Sale value) ÷ (Number of estimated tons of coal extracted)

= ($400,000 + $100,000 + $80,000 - $160,000) ÷ (4,000 tons)

= $105

Now if 700 are extracted in first year, so the depletion would be

= 700 × $105

= $73,500

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3 years ago
Consider two communities. In Mill Town, two families earn $10000 each, six families earn $75,000 each, and two earn $80,000 each
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Answer:

a. The income inequality ratio in Mill Town is 14.06%.

b. The income inequality ratio in Pasture Town is 11.77%

c. Mill Town therefore has the more unequal distribution of income

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Note: Kindly see the attached file for the calculation of the standard deviation and the mean.

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IE = SD ÷ Mean ........................................... (1)

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