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Anika [276]
3 years ago
9

On July 1, 2019, Friedman Inc. invested $720,000 in a mine estimated to have 900,000 tons of ore of uniform grade. During the la

st 6 months of 2019, 100,000 tons of ore were mined.
Required:


1) Calculate depletion cost per unit.


2) Prepare the journal to record depletion.
Business
1 answer:
guajiro [1.7K]3 years ago
7 0

Answer:

A.$0.8

B.Dr Depletion account 80,000

Cr Coal mine Asset 80,000

Explanation:

Friedman Inc

A.

Depletion cost per unit = Amount invested / Estimated tons of ore

$720,000/900,000

=$0.8

B.

Journal entry

Dr Depletion account 80,000

Cr Coal mine Asset 80,000

Total depletion of ore = Number of ore ×Depletion cost per unit

=$0.8*100,000

=80,000

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See attached file

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The theory that higher-income taxpayers should be taxed less because their savings and investments stimulate the economy is know
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Answer:

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Explanation:

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3 years ago
Colombo Enterprises has a defined benefit pension plan. At the end of the reporting year, the following data were available: beg
iVinArrow [24]

Answer:

Option D. $10,000 is the correct answer.

Explanation:

Journal Entry for pension expenses:

Pension Expense                                  $10,000

     Cash                                                 $10,000

(To record pension expenses)

Pension expenses for the year ended is comprised of the following components of pension cost.

Service Cost                                           $14,000

Interest cost                                            $6,000

Expected return on plan assets            $10,000

                                                            __________

Pension expenses                                  $10,000

3 0
3 years ago
If no fixed duration of the partnership is specified, the partnership is a partnership in perpetuity, which means that the partn
arsen [322]

The answer is b. false.

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<span>Under the Act, a partnership will be automatically dissolved  if: a partner dies</span>

<span>·         </span>a partner becomes bankrupt;

<span>·         </span>the court orders it to be dissolved;

<span>·         </span>it's illegal to carry on the business of the partnership;

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<span>a partner gives notice to dissolve the partnership to the other partners. The </span>
7 0
3 years ago
The following U.S. Treasury bond is listed in the The Wall Street Journal: Rate Mo/Yr Bid Asked 9.50 Oct 38 135:30 136:04 This $
STatiana [176]

Answer:

6.35%

Explanation:

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YTM = {47.5 + [(1,000 - 1,360.4)/36]} / [(1,000 + 1,360.4)/2]

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8 0
4 years ago
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