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
The correct option is D.
Insurance sale agents are responsible for selling insurance policies to customers. They also gather and document information about the customers. Insurance underwriters are responsible for evaluating the risks and exposures of potential customers. An insurance accident investigator is responsible for investigating, analyzing and documenting suspicious claims or accident occurrence.
Answer:
c. $58,905.
Explanation:
The computation of the sales revenue is shown below:
optimistic scenario revenue = optimistic unit sold × optimistic price
where,
optimistic unit sold = 3500 × 110%
= $3,850
optimistic price = 15 × 102%
= 15.3
So, the Optimistic revenue is
= 3850 × 15.3
= $58,905
Hence, the option c is correct
Answer:
Part 1
Revised depreciation expense = $32,000
Part 2
The entry to record depreciation expense :
Debit : Depreciation Expense $32,000
Credit : Accumulated Depreciation $32,000
Explanation:
Straight line method charges a fixed depreciation charge over the year of use of an asset.
<em>Depreciation expense = (Cost - Salvage Value) ÷ Estimated Useful Life</em>
2021
Depreciation expense = $80,000
2022
Old Depreciation expense = $80,000
New Depreciation expense = Depreciable Amount ÷ Remaining Useful Life
= ($240,000 - $80,000) ÷ 5
= $32,000
Answer: d. Uncle John's
Absolute Advantage refers to the ability of an individual, company, region or country to produce a particular product or service at a price lower than that of his or her or its competitors.
When the price for the company's products are lower in comparison to other similar products, the demand for its products are more and it's able to sell more number of units than its competitors.
In this case, Uncle John's has the absolute advantage since it sold the most number of cookies (125)
