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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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tankabanditka [31]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Selling price= $500

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Fixed costs= $30,000

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<u>First, we need to calculate the contribution margin:</u>

Contribution margin= 500 - 300= $200

<u>Now, the contribution margin ratio:</u>

Contribution margin ratio= contribution margin/selling price

Contribution margin ratio= 200/500= 0.4

<u>Finally, the contribution margin income statement:</u>

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Net operating income= 30,000

6 0
3 years ago
As a long-term investment at the beginning of the 2021 fiscal year, Florists International purchased 30% of Nursery Supplies Inc
kompoz [17]

Answer:

See the explanation below

Explanation:

Share of net income = 30% × $40 million = $12 million

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The journal are as follows:

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Investment in Nursery Supplies Inc.            63

Cash                                                                                                   63

<u><em>Being the cash payment for investment in Nursery Supplies Inc.              </em></u>

Investment in Nursery Supplies Inc.            12

Investment income                                                                            12

<em><u>Being the a share of net income of Nursery Supplies Inc.                             </u></em>

Cash                                                              20

Investment in Nursery Supplies Inc.                                                 20

<u><em>Being dividend received from Investment in Nursery Supplies Inc.            </em></u>

5 0
2 years ago
If a person violates a cease and desist order, the Commissioner can turn the matter over to the New Jersey Superior Court for fu
VikaD [51]

Answer:

It is up to $1000, each day of violation constitutes a separate violation

Explanation:

Acording to the code the total penalty may not exceed a $ 10,000 aggregatethe department may institute and maintain in the name of the state any inforcement  proceedings hereunder. money collected hereunder shall be deposited in the state general found.

6 0
3 years ago
Market anomaly refers to _______. an exogenous shock to the market that is sharp but not persistent a price or volume event that
sladkih [1.3K]

Answer: price behavior that differs from the behavior predicted by the efficient market hypothesis

                                                                   

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7 0
3 years ago
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mafiozo [28]

Answer:

False

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6 0
3 years ago
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