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STALIN [3.7K]
2 years ago
5

Depletion Entries Alaska Mining Co. acquired mineral rights for $67,500,000. The mineral deposit is estimated at 30,000,000 tons

. During the current year, 4,000,000 tons were mined and sold. a. Determine the amount of depletion expense for the current year. Round the depletion rate to two decimal places. $fill in the blank ed11a103ff82045_1 b. Journalize the adjusting entry on December 31 to recognize the depletion expense. If an amount box does not require an entry, leave it blank. Dec. 31 fill in the blank 396e8209705d02e_2 fill in the blank 396e8209705d02e_3 fill in the blank 396e8209705d02e_5 fill in the blank 396e8209705d02e_6
Business
1 answer:
Ierofanga [76]2 years ago
5 0

Answer: See explanation

Explanation:

a. Determine the amount of depletion expense for the current year.

First, we've to calculate the depletion rate per unit which will be:

= $67,500,000 / 30,000,000

= $2.25

Then, the depletion expense will be:

= $2.25 × 4,000,000

= $9,000,000

b. Journalize the adjusting entry on December 31 to recognize the depletion expense.

Debit Depletion expense $9,000,000

Credit Accumulated depreciation $9,000,000

(Being depletion of 4,000,000 tons)

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Cora purchased a hotel building on May 17,.2018, for $3,000,000. Determine the cost recovery deduction for 2019.
Ostrovityanka [42]

Answer:

d. $76,920

Explanation:

Calculation to Determine the cost recovery deduction for 2019

Based on the information given we were told that they purchased a hotel building on May 2018 for the amount of $3,000,000 which means that to calculate the cost recovery deduction for 2019 we would be using 2.563 to multiply the cost of purchasing the hotel reason been that hotel building is a non residential property.

Hence,

Cost recovery deduction=2.563* $3,000,000

Cost recovery deduction=$76,920

Therefore the Cost recovery deduction will be $76,920

7 0
2 years ago
Under the securities exchange act of 1934, registration with the sec as a broker-dealer may be revoked if the broker-dealer fail
spin [16.1K]
Fails to supervise employees, has previously been suspended by another Administrator, has been convicted of a financial crime within the past 10 years, becomes insolvent.
5 0
3 years ago
An investment will pay you $95,000 in 10 years. If the appropriate discount rate is 9 percent compounded daily, what is the pres
olga2289 [7]

The present value of the investment future value is $38,628.40

What is present value?

Present value is the today's worth of a future amount when discounted or expressed in today's dollar equivalence.

The present value of a single future cash flow can be determined using the present value formula below:

PV=FV/(1+r/365)^(N*365)

PV=present value=unknown

FV=future value=$95,000

r=discount rate=9%

N=number of years before the future amount is received=10

365 is an indication of number of years in a year since discounted is compounded daily.

PV=$95,000/(1+9%/365)^(10*365)

PV=$38,628.40

The present value can be further understood using the link below:

brainly.com/question/18490474

#SPJ1

5 0
2 years ago
Kansas Enterprises purchased equipment for $73,500 on January 1, 2018. The equipment is expected to have a five-year life, with
arsen [322]

Answer:

Using the straight-line method, the book value at December 31, 2018 would be $53.760

Explanation:

                2018 2019 2020 2021 2022

Cost      67200 53.760 40.320 26.880 13.440

Dep-Acu      13.440 13.440 13.440 13.440 13.440

Book Value53.760 40.320 26.880 13.440 0

3 0
3 years ago
What is the present value of $1,400 a year at a discount rate of 8 percent if the first payment is received 7 years from now and
ioda

Answer:

P V = 1669,5

Explanation:

After seven years, future payment will be 9800$ and from there on we will have 23 annual payments more:

P V = 9800/(1+0.08)^23 = 9800/5,87 = 1669,5

8 0
3 years ago
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