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
CaHeK987 [17]
3 years ago
8

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?
Business
1 answer:
dybincka [34]3 years ago
7 0

Answer: <u>$4,500</u>

Explanation:

Equipment was purchased for $76,000.

It has an estimated useful life of 8 years.

It will be sold for $4,000 after these 8 years so that is the salvage value.

With these figures depreciation per annum is calculated with the following formula;

Depreciation per annum = \frac{Cost of Asset - Salvage Value}{Useful life}

= \frac{76,000 - 4,000}{8}

= $9,000

The Equipment was purchased on July 1, Year 1. In Year 1 therefore it will only be in use for half the year and this is what it should b depreciated in light of.

Semi-annual Depreciation = 9,000/2

= <u>$4,500</u>

You might be interested in
According to Lucas and​ Sargent, workers and firms have rational​ expectations, and therefore if the Fed pursues an expansionary
NeX [460]

Answer:

D. agents will immediately adjust their expectations of inflation up.

Explanation:

Expansionary monetary​ policies are geared towards stimulating economic growth. The Fed can impose lower interest rates or purchase bonds and securities in open market operations as expansionary tools. Lowering interest rates encourages banks and other lending institutions to lend money to firms and households.  

Purchasing bonds and securities adds money to the banking system. The increased money will be loaned out to businesses and individuals. The availability of low-cost credit motivates firms to borrow and expands their business capacities. When households borrow with ease, it leads to an increase in consumption expenditure.  These actions result in too much money in circulation, which is inflation.

4 0
3 years ago
If you invest $475 per month for a period of 30 years, earning 10.2% (annual), how much will you have at the end of the period?
hjlf

Answer:

idk

Explanation:

6 0
2 years ago
after the federal reserve buys bonds, the interest rate changes and aggregate expenditures change, the following will most likel
PIT_PIT [208]

The next thing to occur would be B. the price level in the economy will rise and the money demand will decrease

<h3>What is Interest Rate? </h3>

This refers to the amount of money that is added to be paid back on the settlement of a loan.

Hence, we can see that after the federal reserve buys bonds, the interest rate changes and aggregate expenditures change, thus will cause the price level in the economy will rise and the money demand will decrease

Read more about bonds here:

brainly.com/question/25965295

#SPJ11

6 0
1 year ago
Suppose total deposits in the first bank of commerce are $200,000 and required reserves are $10,000. based on this information,
Bas_tet [7]
0.05

To find the required reserve ratio, we need to know the total deposits and the required reserves amount. 

Next, we divide the required reserve amount by the total deposits. 
$10,000 / $200,000 = 0.05

The 0.05 is the required reserve ratio for First Bank of Commerce.  
4 0
3 years ago
What is the name of the document that companies use to report quarterly financial results?.
Fynjy0 [20]

Answer:

 Form 10-Q

Explanation:

5 0
2 years ago
Other questions:
  • Suppose that $4000 is deposited in an account that earns 5% interest. how much is in the account:
    13·1 answer
  • What is a lien and when can it be used/
    5·2 answers
  • 5. Describe an ethical dilemma related to pricing or advertising. (1 point)
    7·1 answer
  • Entrepreneurs' intentions are based on their perception of feasibility rather than someone else's impression of whether it is fe
    13·1 answer
  • Dunwich is a small village; in 2014, its GDP was $10,000 and its population was 10 people. In 2015, GDP in Dunwich decreased to
    7·1 answer
  • The accounting equation is assets = liabilities + owner’s equity.
    8·1 answer
  • The Ryan Corporation uses the composite method and its composite rate is 7.5% per year. The entry that should be made when plant
    6·1 answer
  • A business that is making a profit is said to be
    6·1 answer
  • 1. Ownership of the 1,000 shares outstanding are evenly divided among 80 shareholders. The shareholders are 78 individuals, 10 o
    15·1 answer
  • Five key success factors for a successful business
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!