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tensa zangetsu [6.8K]
4 years ago
8

Cantor Co. purchased a coal mine for $2,000,000. It cost $500,000 to prepare the coal mine for the extraction of the coal. It wa

s estimated that 750,000 tons of coal would be extracted from the mine during its useful life. Cantor planned to sell the property for $100,000 at the end of its useful life. During the current year, 15,000 tons of coal were extracted and sold. What would Cantor's depletion amount be per ton for the current yea
Business
1 answer:
Ksivusya [100]4 years ago
8 0

Answer:

Depletion cost  for current year $ 48,000

Explanation:

Computation of depletion amount

Purchase cost                                                                       $ 2,000,000

Preparation cost                                                                   <u>$     500,000 </u>  

Cost of mine                                                                         $ 2,500,000

Sale value at end of period                                                 <u>$(    100,000)</u>

Depletion basis of mine                                                       $ 2,400,000

Total estimated extraction from mine                                       750,000 tons

Cost of extraction per ton ( $ 2,400,000 / 750,000)        $ 3.20 per tons

Extraction during year                                                             15,000 tons

Depletion cost for the year                                                 $ 48,000                                        

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3 0
2 years ago
Bob, the owner of Orthopedic Supply, just discovered that his trusted friend Ruth, his accountant for over 30 years, has been mi
Alex777 [14]

Answer:

E) an ethical dilemma.

Explanation:

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4 0
3 years ago
While it makes a difference how much wine a person consumes in their risk for cancer, it does not make a difference how much a p
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5 0
3 years ago
Appropriation to retained earning is
jenyasd209 [6]
Are the sum of a company's profits, after dividendpayments, since the company's inception. They are also called earned surplus, retained capital, or accumulated earnings.

(EXAMPLE):

Let's assume Company XYZ has been around for five years. During this time, it reported the following net income:

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A company's board of directors may apprompany's retained earnings when it want to restrict dividend distributions to shareholders. Appropriations are usually done at the board's discretion, although bondholders and other circumstances may contractually require the board to do so. Appropriations appear as a special account in the retained earnings section. When an appropriation is no longer needed, it is transferred back to retained earnings. Because retained earnings are not cash, a company mayfund appropriations by setting aside cash or marketable securities for the projects indicated in the appropriation.

Why its important

It is important to understand that retained earnings do not represent surplus cash or cash left over after the payment of dividends. Rather, retained earnings demonstrate what a company did with its profits.

3 0
4 years ago
Read 2 more answers
Beginning inventory, purchases, and sales for Item Zeta9 are as follows:
Taya2010 [7]

Answer:

(a) The cost of goods sold on October 24

: $552

(b) The inventory on October 31: $532, (with 19 units)

Explanation:

The company uses a perpetual inventory system and using the first-in, first-out (FIFO) method for Item Zeta9, the answers are explaned with the help of the attached file:

The Cost of goods sold on October 24: $300+$252=$552                              

Download xlsx
5 0
3 years ago
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