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balandron [24]
3 years ago
8

The Oxide Mining Company acquired an iron ore deposit for $2,000,000. The company's geologist estimated the deposit to contain 1

,500,000 tons of iron ore. Extracting equipment with a 10-year service life and costing $450,000 was permanently installed in the mine. At the end of the first year, 60,000 tons had been extracted. The end-of-year journal entry to record the depreciation of the extracting equipment would require which of the following? (Assuming the rate of depreciation is proportional to the amount of natural resource removed) a.A credit to Accumulated Depreciation of $45,000 b.A credit to Accumulated Depletion of $90,000 c.A credit to Accumulated Depreciation of $18,000 d.A delay until all of the ore is extracted e.None of the above
Business
1 answer:
natta225 [31]3 years ago
4 0

Answer:

a.A credit to Accumulated Depreciation of $45,000

Explanation:

Depreciation is the systematic allocation of the cost of an asset to the income statement over the estimated useful life of that asset.

It is determined as the depreciable value of the asset over the estimated useful life of the asset where the depreciable value is the difference between the cost and salvage value of the asset

Mathematically,  

Depreciation = (Cost - Salvage value)/Estimated useful life

The entries for recording depreciation are

Debit Depreciation expense

Credit Accumulated depreciation

Depreciation on equipment

= $450,000/10

= $45,000

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Suppose 30% of business majors major in accounting. You take a random sample of 3 business majors. Answer questions 39 and 40: W
creativ13 [48]

Answer:

The probability that at least one student majors in accounting=0.3×0.3×0.3=0.027

Explanation:

<em>Step 1: Determine the number of accounting majors in a business</em>

N=P×S

where;

N=number of accounting majors

P=probability of accounting majors

S=sample size

This can also be written as;

Number of accounting majors=probability of accounting majors×sample size

In our case;

Number of accounting majors=unknown, to be determined

Probability of accounting majors=30%=30/100=0.3

Sample size=3 business majors

Substituting;

Number of accounting majors=0.3×3=0.9

<em>Step 2: Determine the chance that at least one student majors in accounting</em>

The probability that at least one student majors in accounting=0.3×0.3×0.3=0.027

5 0
3 years ago
A type of national lawmaking body that is common throughout Europe is known as a __________.
NemiM [27]
The correct answer is letter (B) Parliament. A type of national lawmaking body that is common throughout Europe is known as a (B) Parliament. It was started in 1952 as Common Assembly of the European Coal and Steel Community. In 1962, it became as the European Parliament and had its first elections in 1979.
8 0
3 years ago
Read 2 more answers
How can a company´s salespeople help with product development?
Marizza181 [45]

Answer:

Salespeople, who are on the front line interacting with customers, assume one of the most important roles in the product differentiation process. A well-informed customer will usually choose the product that offers the most value. There- fore, salespeople need to position their product with a value proposition.

6 0
3 years ago
A delivery van that cost $40,000 has an expected service life of eight years and a residual value of $4,000. Depreciation expens
vladimir1956 [14]

Answer:

$7,500

Explanation:

Calculation for the Depreciation of rah second year of the asset's life

Second year depreciation=(1/8 years*2)*[($40,000)-(1/8 years*2* $40,000)]

Second year depreciation=(0.25)*[($40,000)-(0.25*$40,000)]

Second year depreciation=(0.25)*[($40,000-$10,000)]

Second year depreciation=0.25*$30,000

Second year depreciation=$7,500

Therefore the Depreciation of rah second year of the asset's life using the double-declining-balance method is: $7,500

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Making a decision

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