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grigory [225]
3 years ago
9

Mining Corporation bought land for $330,000 (residual value $22,000) that is estimated to yield 660,000 pounds of a removable na

tural resource. The amounts of natural resources extracted in 2020 and 2021 were 77,000 and 99,000 pounds, respectively. Determine depletion for 2020 and for 2021
Business
1 answer:
likoan [24]3 years ago
6 0

Answer:

35933

$46,200

Explanation:

Depletion = amount of pounds extracted x depletion factor

depletion factor  = (cost of asset - salvage value) / estimated yield

(330,000 - 22,000) / 660,00 = 0.467

2021 = 0.467 x 99,000 = $46,200

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Based on market values, Gubler's Gym has an equity multiplier of 1.46 times. Shareholders require a return of 10.91 percent on t
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=(1-\frac{1}{1.46})\times 10.91\% \times (1-39\%)+(\frac{1}{1.46})\times 4.84\% \\\\=(\frac{1.46-1}{1.46})\times \frac{10.91}{100} \times (\frac{100-39}{100})+(\frac{1}{1.46})\times \frac{4.84}{100} \\\\ =(\frac{0.46}{1.46})\times \frac{10.91}{100} \times (\frac{61}{100})+(\frac{1}{1.46})\times \frac{4.84}{100} \\\\=\frac{306.1346}{14600}+\frac{4.84}{146} \\\\=  0.021+0.033 \\\\ =0.054\\\\= 5.4\%

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