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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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5 0
3 years ago
The primary operating goal of a publicly-owned firm interested in serving its stockholders should be to.
leva [86]

The primary goal of a publicly owned firm interested in serving its stakeholders would be to Maximize the stock price per share.

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The faster this firm grows, the more people would want to invest and buy its stock. This would cause them to pay higher.

As the supply of this stock stays constant due to the increased demand it has, the price of the stock would increase.

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3 years ago
most executives believe that they and their firms behave in an ethical manner and that it is in their best interests to do so. h
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4 0
2 years ago
True or False? Financial instruments can be grouped by time to maturity (money vs. capital) or type of obligation (stock, bond,
blondinia [14]

Answer:

True

Explanation:

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Classification of financial instruments could be based on the asset or debt classes. The debt classification could also be broken down as being long or short term. So, the grouping by time to maturity (money vs. capital) or type of obligation (stock, bond, derivative) is a system of classifying financial instruments.

6 0
3 years ago
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Andre45 [30]

Answer:

P5

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8 0
3 years ago
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