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Over [174]
3 years ago
8

At the beginning of 2020, Beerbo acquired a mine for $970,000. Of this amount, $100,000 was ascribed to the land value (the rema

ining portion was ascribed to the mine). Surveys conducted by geologists have indicated that approximately 12,000,000 units of ore appear to be in the mine. Beerbo incurred $170,000 of development costs associated with this mine prior to any extraction of minerals. It also determined that the fair value of its obligation to prepare the land for an alternative use (when all of the minerals have been removed) is $40,000. During 2020, 2,500,000 units of ore were extracted and 2,100,000 of these units were sold. What is the amount extracted in 2020
Business
1 answer:
r-ruslan [8.4K]3 years ago
6 0

Answer:

$225,000

Explanation:

Depletion rate = [Mine cost - Land value + Obligation to prepare the land for an alternative + Development cost] / Total number of ore extracted

Depletion rate = [$970,000 - $100,000 + $40,000 + $170,000] / $12,000,000

Depletion rate = $1,080,000/$12,000,000

Depletion rate = $0.09

Amount extracted in 2020 = Unit of ore extracted in 2020 / Depletion rate

Amount extracted in 2020 = 2,500,000 units * $0.09

Amount extracted in 2020 = $225,000

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anzhelika [568]

Answer:

The correct option is;

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Explanation:

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7 0
3 years ago
Sales $200,000 Net income 100,000 Depreciation 20,000 Interest 10,000 Taxes 5,000 What is the company’s operating profit margin?
WITCHER [35]

Answer:

57.5%

Explanation:

Data Provided:

Total Sales =  $ 200,000

The net income = $ 100,000

Depreciation = $ 20,000

Interest = $ 10,000

Taxes = $ 5,000

Now,

the operating profit is the from the income before the taxes and interest. Thus,

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or

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Now,

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3 0
3 years ago
Bianca is conducting an experiment to determine how temperatures affect the productivity of employees. she has just completed th
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3 years ago
A technology company is growing rapidly and needs to hire experienced developers and marketing professionals. The best people in
Vitek1552 [10]

Answer:

A technology company is growing rapidly and needs to hire experienced developers and marketing professionals. The best people in these fields usually have jobs and need to be enticed to apply elsewhere. To identify individuals who are likely to be a good match, hiring managers should<u> use social media.</u>

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6 0
3 years ago
Jim wants to buy a car, but he’ll probably only need it for a couple of years. He has a short commute to work, so he won’t be pu
svetlana [45]
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