1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Anna [14]
3 years ago
11

Santa Fe purchased the rights to extract turquoise on a tract of land over a five-year period. Santa Fe paid $429,000 for extrac

tion rights. A geologist estimates that Santa Fe will recover 6,500 pounds of turquoise. During the current year, Santa Fe extracted 1,950 pounds of turquoise, which it sold for $277,000. What is Santa Fe's cost depletion expense for the current year?
A) $85,800B) $128,700
C) $156,440
D) $429,000
E) None of these
Business
1 answer:
notsponge [240]3 years ago
8 0

Answer:

Option B $128700

Explanation:

The amortization can be calculated using the following formula:

Amortization for the Year = Assets Value * (Turquoise Extracted / Total Turquoise)

Amortization for the Year = $429,000 * (1950/6,500) = $128,700

The method used is depletioning method because it seems that the company will extract all of the turquoise within the 3.33 year time (6500/1950), which is within the 5 years duration for which the right to extract the turquoise is purchaseed. Otherwise the straigth line method would had be used here.

You might be interested in
in preparing a statement of cash flows under the indirect method, an increase in accounts payable would be reported or included
Nana76 [90]

Answer:

In preparing a statement of cash flows under the indirect method, an increase in accounts payable would be reported or included as a(n):

source of cash.

Explanation:

Accounts payable are liabilities owed to suppliers for goods or services. They are listed on the balance sheet under current liabilities and on the cash flow statement under operating activities. When preparing the statement of cash flows, an increase in accounts payable is regarded as a source of cash while a decrease is regarded as a use of cash.

7 0
3 years ago
An advantage of __________ is that they allow real-time merchandising; products and features can be added or removed as needed,
alexgriva [62]

A benefit of digital catalogs is<span> that they allow real-time merchandising. Other advantages </span>are they eliminate the costs of printing and mailing, they offer an almost unlimited merchandise, they offer a wider assortment of presentation formats. The internet and digital marketing have created this to match the need of consumers. 

<span> 
</span><span> </span>

8 0
4 years ago
Why might a bank offer to make a loan to a customer at a low initial rate that will increase after a set period of time?
erica [24]
To make the loan look more attractive and competitive now
3 0
3 years ago
Read 2 more answers
Answer the question on the assumption that the legal reserve ratio is 20 percent. Suppose that the Fed sells $500 of government
SVEN [57.7K]
B.) Remain unchanged
4 0
3 years ago
The main difference between storage warehouses and distribution warehouses is that storage warehouses are relatively small, spec
Elza [17]

Answer:

True

Explanation:

Storage warehouses are used to store items for short periods of time while distribution warehouses are much bigger facilities that are used to gather and redistribute products.

Distribution warehouses are usually very big and can store a lot of products, while storage warehouses are usually a big facility that is divided into smaller units, each smaller unit serves as a storage warehouse. Storage warehouses are used to store more specific items while distribution warehouses can handle different types of goods.

4 0
3 years ago
Other questions:
  • Which materials recycling would reduce the largest portion of america's trash?
    8·1 answer
  • Lois kay is an experienced baker. she has decided to bake and decorate her daughter's wedding cake instead of ordering one at th
    8·1 answer
  • A state trial court held that raynes inc. violated its contract with cranwell management. raynes appealed the decision to the st
    6·1 answer
  • When medicare was passed in 1965, its sponsors said it would cost about ____ a year?
    12·1 answer
  • Brett, the manager at Warson’s Diner, plans to promote Keisha, one of the waitresses, to the position of an assistant manager. H
    12·1 answer
  • Valet Corporation began operations in 2018. An analysis of Valet's debt securities portfolio acquired in 2018 shows the followin
    10·1 answer
  • A​ monopoly's cost function is CQ and its the demand for its product is pQ where Q is​ output, p is​ price, and C is the total c
    7·1 answer
  • According to the FCPA, U.S. managers are criminally liable Question 5 options: a) Only for bribes paid in the U.S. and not in ot
    13·1 answer
  • Are good places to look to find your current expenses when building your budget.
    14·1 answer
  • CHAPTER 8, TEST A
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!