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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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Rashid [163]
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4 years ago
Capital budgeting is concerned with making and managing expenditures on:________
vovangra [49]

Answer:

on your goal or achievement

7 0
3 years ago
Michael Chang buys only tennis rackets during a particular year. During the year in question, the price of all goods rises by 10
Zolol [24]

Answer:

Michael does not experience inflation because he only buys Tennis rackets

Explanation:

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One of the direct impact of inflation is rise in price of goods and services.

As the price of rackets was not affected by the inflation , that means that Michael was not affected by the inflation.

6 0
3 years ago
As one of the top managers at DropLabs, Henry ensures that all his employees are given the right to speak freely with their mana
Mice21 [21]

Answer:

The Common Good Ethics Approach.

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The employers ability to voice out their grievances,suggestions and contributions to the daily running of the organisation coupled alongside the mangers compassion and respect for all individuals confirms to my first statement which says 'The best society is been guided by the people's will ' and that supports the common good Approach.

4 0
3 years ago
Read 2 more answers
"
ss7ja [257]
As seen in the chart  B has the comparative advantage in coal because 1/3 > 1/5 It means they are better at producing coal than the U.S.Have in mind examples like:
U.S. 
1 barrel of oil = 4 hrs 
1 ton of coal = 5 hrs 

B 
1 barrel of oil = 7 hrs 
1 ton of coal = 3 hrs 
After seeing this we can say that the country which has more availability has a comparative advantage over other countries.
Hope this helps
8 0
3 years ago
Read 2 more answers
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