I HAVE seen two pretty best friends..
Answer:
The journal entries are as follows:
(a) Oil and gas properties A/c Dr. $6,600,000
To cash $6,600,000
(To record purchase)
(b)
Oil and gas properties A/c($570,000 + $450,000) Dr. $1,020,000
To cash $1,020,000
(To record additional testing and preparations)
(c) Depletion expense A/c Dr. $548,640
To accumulated depletion $548,640
(To record Depletion)
Workings:
Depletion expense:
= $548,640
Answer:
$200,000
Explanation:
Total cost = Fixed cost + variable cost
$200,000 = $100,000 + $100,000
Fixed cost is cost that do not vary with production. E.g. rent
If no production activity takes places, fixed cost would still be incurred.
Variable cost is cost that varies with production e.g. wages
If no production activity takes place, there would be no variable cost.
I hope my answer helps you.
Answer:
$922,000
Explanation:
Operating income after tax = $3,100,000 - ($3,100,000 × 38%) = $1,922,000
Annual cost of dollar = 20,000,000 × 5% = 1,000,000
EVA = Operating income after tax - Annual cost of dollar = 1,922,000 - 1,000,000 = $922,000