1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lisov135 [29]
3 years ago
6

Brandon Oil Company recently purchased oil and natural gas reserves in a remote part of Alaska for $800,000. Brandon spent $10,0

00,000 preparing the oil for extraction from the ground. Brandon estimates that 120,000,000 barrels of oil will be extracted from the ground. The land has a residual value of $20,000. During 2019, 14,990,000 barrels are extracted from the ground. Required: Calculate the amount of depletion taken in 2019. (Note: In your calculations, round depletion per barrel to two decimal places.)
Business
1 answer:
noname [10]3 years ago
3 0

Answer: $1,349,100

Explanation:

The depletion per barrel will be calculated as:

= (Total cost of reserve - Residual value) / Estimated barrels of oil

Total cost of reserve will be:

= $800,000 + $10,000,000

= $10,800,000

Then, the depletion per barrel will be:

= ($10,800,000 - $20000) / 120,000,000

= $10,780,000 / 120,000,000

= $0.09 per barrel

Depletion for 2019 will be:

= Depletion per barrel × barrels extracted

= $0.09 × 14,990,000 barrels

= $1,349,100

You might be interested in
Holly files an employment discrimination suit against Industrial Corporation under Title VII of the Civil Rights Act on a dispar
Zinaida [17]

Answer:

D) seniority system

Explanation:

A disparate treatment (or impact) by an employer refers to a claim that an employer is treating an employee differently than others not publicly or directly, but that discrimination produces a negative effect.

Title VII of the Civil Rights Act protects employees from discrimination based on gender, race, color, national origin and religion.

3 0
3 years ago
Chelsea, Inc. uses the job costing method and uses direct labor hours as the allocation base. In 2016, the total estimated and a
REY [17]

Answer:

3. MOH allocated to job= predetermined MOH rate * actual amount of allocation base used by the job

Explanation:

3. MOH allocated to job= predetermined MOH rate * actual amount of allocation base used by the job

The predetermined overhead rate is used to apply manufacturing overhead costs to production jobs. the quantity of a cost driver required by a particular job is multiplied by a predetermined overhead rate to determine the amount of overhead cost applied to the job.

An estimate is made of

  1. the amount of manufacturing over head that will be incurred during a specific period of time and
  2. the amount of the cost driver ( or activity base) that will be used or incurred during the same time period. the predetermined overhead rate is computed as follows

Predetermined Overhead Rate= Budgeted Manufacturing Overhead Cost/ Budgeted amount of cost driver

The predetermined overhead rate is used to apply manufacturing overhead costs to production jobs. The quantity of the cost driver ( or activity base ) required by a particular job is multiplied by the predetermined overhead rate to determine the amount of overhead cost applied to the job.

6 0
4 years ago
The straight-line depreciation method and the double-declining-balance depreciation method: A. Produce the same depreciation exp
Artemon [7]

The relationship between the straight-line and double-declining-balance method is that they D. Produce the same total depreciation over an asset's useful life.

<h3>How are the straight-line and double-declining-balance methods related?</h3>

While they do not produce the same depreciation every year, they will eventually depreciate an asset in the same way overtime.

What this means is that both methods will depreciate an asset by the same amount at the end of the asset's life. However, the depreciation amounts will vary by method on an annual basis.

In conclusion, option D is correct.

Find out more on depreciation methods at brainly.com/question/26948130.

6 0
2 years ago
ou wish to retire in 20 years, at which time you want to have accumulated enough money to receive an annual annuity of $32,000 f
AleksAgata [21]

Answer:

Annual contributions to the retirement fund will be $6,347.31

Explanation:

First find the Present Value of the Annuity giving payments of $32,000 annually for 25 years at the rate of 10%.

Using a Financial Calculator enter the following data

PMT = $32,000

P/y = 1

N = 25

R =  10%

FV = 0

Thus, the Present Value, PV is $290,465.28

At the time of retirement (in 20 years time) the Value of the annuity fund is $290,465.28.

Next we need to find the Payments PMT to reach this amount in 20 years time at the interest rate of 8%

Using a Financial Calculator enter the following data

FV = $290,465.28

N = 20

R = 8 %

PV = $0

Thus, the Payments, PMT required will be $6,347.3080

Conclusion :

Annual contributions to the retirement fund will be $6,347.31

3 0
4 years ago
The balance sheet of Subsidiary shows assets of $86,400 and liabilities of $15,000. The fair value of the assets is $90,000 and
Andrews [41]

Answer:

b. $20,000

Explanation:

Goodwill = Investment in Subsidiary - (Asset With book value - Liability with book value) - (Fair value of Asset - Book value of Asset)

Goodwill = $95,000 - ($86,400 - $15,000) - ($90,000 - $86,400)

Goodwill = $95,000 - $71,400 - $3,600

Goodwill = $20,000

So, parent should record goodwill on this purchase of $20,000

8 0
3 years ago
Other questions:
  • Suppose that $4000 is deposited in an account that earns 5% interest. how much is in the account:
    13·1 answer
  • An international organization created in 1958 to make trade easier among member nations:
    7·2 answers
  • The cost of a longminus term debt generally​ ________ that of a shortminus term debt. A. is less than B. is equal to C. is less
    11·1 answer
  • Wiser Pharmaceutical has received a utility patent from the US Patent and Trademark Office. It sold this patent to another pharm
    15·1 answer
  • Jamie ensures that his subordinates are closely guided and instructed throughout a project. He believes that this makes him a hi
    6·1 answer
  • The internal financial statements of Vera Incorporated show that their beaded purses incurred an operating loss in the most rece
    13·1 answer
  • On December 1, a company accepted a $5,000, 4%, 90-day note. How much accrued interest will be recorded as an adjusting entry on
    11·1 answer
  • Difference between credit sales and credit card sales
    9·2 answers
  • The director of research has asked you to produce a pro forma valuation of a target company using leveraged buyout analysis. A c
    14·1 answer
  • Setting objectives and identifying methods to achieve those objectives is called.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!