Answer:
Option C is the correct answer.
<u>Debit Depletion Expense $1,358,500; credit Accumulated Depletion $1,358,500.</u>
Explanation:
Fortune Drilling Company acquires a mineral deposit at a cost of $5,900,000. It incurs additional costs of $600,000 to access the deposit, which is estimated to contain 2,000,000 tons and is expected to take 5 years to extract. Compute the depletion expense for the first year assuming 418,000 tons were mined.
Depletion expense = ( Mineral Deposit Cost + Additional cost)/ Estimate Extraction * N0 of ton extracted in first year
Depletion expense = (5900000 + 600000)/2000000 * 418000
Depletion expense = $ 1,358,500
Answer:
The Matching principle.
Explanation:
Matching principle is the accounting principle that requires that the expenses incurred during a period should be recorded in the same period in which the related revenues are earned. This principle recognizes that businesses must incur expenses to earn revenues.
The principle is at the core of the accrual basis of accounting and adjusting entries.
Answer:
6.7%
12.7%
7.5%
Explanation:
Required rate of return = risk free rate + ( stock beta × Markert premium)
When beta = 0.8
The required rate of return = 3.5% + (4% × 0.8) = 6.7%
When beta = 2.3
The required rate of return = 3.5% + (4% × 2.3) = 12.7%
The required rate of return on the market:
3.5% + (4%×1) = 7.5%
I hope my answer helps you.
Answer:
po polsku umiem nie rozumiem angielskiego
