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Andrej [43]
3 years ago
13

Montana Mining Co. (MMC) paid 200 million for the right to explore and extract rare metals from land owned by the state of Monta

na. To obtain the rights, MMC agreed to restore the land to a suitable condition for other uses after its exploration and extraction activities. MMC incurred exploration and development cost of $60 million. MMC has a credit-adjusted risk free interest rate of 7%. It estimates the possible cash flows for restoring the land, 3 years after extraction activities begin, as follows:
Cash Outflow Probability

$10 million 60%
$30 million 40%

The asset retirement obligation (rounded) that should be recognized at the beginning of the extraction activities is: ________
The asset retirement obligation (rounded) that should be reported on the balanace sheet one year after activities begin is: _______
Business
1 answer:
cestrela7 [59]3 years ago
7 0

Answer:

A. $14.7 million

B.$15.7 million

Explanation:

A. Calculation for The asset retirement obligation that should be recognized at the beginning of the extraction activities

PV of the expected cash flows=0.81630 *[(.60 *$10 million) + (.40 $30 million)]

PV of the expected cash flows=0.81630*($6 million+$12 million)

PV of the expected cash flows=0.81630*$18 million

PV of the expected cash flows=$14,693,400

PV of the expected cash flows=$14.7 million (rounded)

Therefore The asset retirement obligation that should be recognized at the beginning of the extraction activities is:$14.7 million

B. Calculation for The asset retirement obligation that should be reported on MMC's balance sheet one year after the extraction activities begin

Asset retirement obligation=$14.7 million ×(1+.07)

Asset retirement obligation=$14.7 million × 1.07

Asset retirement obligation = $15.7 million (rounded)

Therefore The asset retirement obligation that should be reported on the balanace sheet one year after activities begin is:$15.7 million

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Which of the following statements are true about organizational culture? Check all that applya. Employees may be unaware of the
erma4kov [3.2K]

Answer:

statements "a" "b" and "d" are true

Explanation:

The <u>statements "a" "b" and "d" are true</u> because employees may be uninformed of the underlying hypotheses that supervise an organization's culture. Culture can generate ambitious resources for a company. The actions managers exert can improve a company's culture. Organizational culture encompasses values and practices that provide the different social furthermore psychological situation of a company. The organizational culture changes the way people communicate, the circumstances within which culture is created, the revolution they will have towards specific changes, and presently the way they participate.

6 0
4 years ago
One factor that shifts the consumption schedule is household wealth. Households build wealth by spending their incomes as they e
yanalaym [24]

Answer:

the correct answer is *not spending all their current incomes.

Explanation:

if you look at all the other options, they are not creating wealth but depletes it away. the only way to build wealth is by investing and saving over time. ideally, by not spending all their current income.

6 0
3 years ago
The staffing policy that seeks the best people for key jobs throughout the organization, regardless of nationality, is called
Juli2301 [7.4K]

The question is incomplete:

The staffing policy that seeks the best people for key jobs throughout the organization, regardless of nationality, is called:

a. Ethnocentric staffing policy

b. Polycentric staffing policy

c. Geocentric staffing policy

d. None of the above

Answer:

Geocentric

Explanation:

-Ethnocentric staffing policy is when a business that has global operations seeks the people for key positions from the home country.

-Polycentric staffing policy is when a company seeks employees in the home country for positions in the headquarters and people from other places for the other offices abroad.

-Geocentric staffing policy is when a company seeks the best person for each position without considering the nationality or culture.

According to this, the answer is that the staffing policy that seeks the best people for key jobs throughout the organization, regardless of nationality, is called geocentric staffing policy because the company only focuses on the person that best fits the position without considering the nationality.

6 0
4 years ago
Glenville Company has the following information for April:
AURORKA [14]

Answer:

cost of goods manufactured= $144,000

Explanation:

Giving the following information:

Cost of direct materials used in production $48,000

Direct labor 59,000

Factory overhead 37,000

Work in process inventory, April 1 40,000

Work in process inventory, April 30 40,000

<u>To calculate the cost of goods manufactured, we need to use the following formula:</u>

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 40,000 + 48,000 + 59,000 + 37,000 - 40,000

cost of goods manufactured= $144,000

8 0
3 years ago
North Wind Aviation received its charter during January 2013. The charter authorized the following capital stock:
Citrus2011 [14]

Answer:

during January 2013. The charter authorized the following capital stock:

Preferred stock: 8 percent, par $10, authorized 20,000 shares.

Common stock: par $1, authorized 50,000 shares.

During 2013, the following transactions occurred in the order given:

a. Issued a total of 45,000 shares of the common stock for $20 per share.

b. Issued 12,000 shares of the preferred stock at $21 per share.

c. Issued 3,500 shares of the common stock at $25 per share and 1,200 shares of the preferred stock at $21.

d. Net income for the first year was $53,000.

Required:

Prepare the stockholders� equity section

8 0
3 years ago
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