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nataly862011 [7]
3 years ago
6

On January 15, 2020, Vern purchased the rights to a mineral interest for $3,500,000. At that time, it was estimated that the rec

overable units would be 500,000. During the year, 40,000 units were mined and 25,000 units were sold for $800,000. Vern incurred expenses during 2020 of $500,000. The percentage depletion rate is 22%. Determine Vern's depletion deduction for 202
Business
1 answer:
larisa86 [58]3 years ago
6 0

Answer: $175,000

Explanation:

Vern's depletion deduction for 2020 will be calculated thus:

= (Cost - Salvage value) / (Estimated Number of units × Number of units extracted

= 3500000/500000 × 25000

= 7 × 25000

= $175000

Therefore, Vern's depletion deduction for 2020 is $175000

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Answer:

$980

Explanation:

Formula for Economic Order Quantity

Q = square root of (2*Annual demand* Order Cost)/Holding Cost

Where Q = Economic order quantity, which is 28 in our question.

28 = square root of (2* (15 units per month *12 months)* Order cost)/0.25*

28 = square root of 2*180*order cost/0.25

28 = square root of 360*order cost/0.25* (180 units *$10 per unit)

28= square root of  360* order cost/450 .

Square both sides

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Multiply both sides by 450

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A. The government should implement subsidies as they would help domestic businesses be able to afford to lower the prices of their goods and thus become more competitive.

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The government adoption of subsidies in order to support domestic telecommunication is the most effective solution in the long run. Domestic firms will be able to compete with lower prices as the cost and expenses structure would have a lighter burden over revenue.

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4 years ago
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