Business, 15.02.2021 20:00, CorsoGod

Jackpot Mining Company operates a copper mine in central Montana. The company paid 1,000,000 in 2016 for the mining site and spent an additional 600,000 to prepare the mine for extraction of the copper.
After the copper is extracted in approximately four years, the company is required to restore the land to its original condition , including repaving of roads and replacing a greenbelt.
The company has provided the following three cash flow possibilities for the restoration costs:
Cash outflowProbability
1. 300,00025%
2. 400,00040%
3. 600,00035%
To aid extraction, Jackpot purchased some new equipment on July 1, 2016, for $120,000.
After the copper is removed from this mine, the equipment will be the sold for an estimated residual amount of 20,000. There will be no residual value for the copper of mine.
The credit adjusted risk free rate of interest is 10%.
The company expects to extract 10 million pounds of copper from the mine.
Actual production was 1.6 million pounds in 2016 and 3 million pounds in 2017.
1. Compute the depletion and depreciation on the mine and mining for 2016 and 2017. The units of production method is used to calculate depreciation.
2. Discuss the accounting treatment of the depletion and depreciation on the mine and mining equipment.

Answers: 1

Show answers

Other questions on the subject: Business

Business, 21.06.2019 21:00, paolaf9996

Intronix uses copy editors, computer graphics specialists, and java programmers to produce ads for magazines and the internet. the average new ad for magazines typically requires 180 hours of a copy editor's time and 135 hours of a computer graphics specialist's time, whereas ads produced for the internet require 35 hours of copy editor time, 195 hours of computer graphics time, and 60 hours of a java programmer's time. lassie food, a dog food manufacturer, has hired intronix to produce ads in the next four week. although currently it considers magazine ads 3 times more valuable than internet ads, it still wishes to have at least 2 of each produced within the next four weeks. intronix has assigned up to 3 copy editors, 4 computer graphics specialists, and 1 java programmer, each committed to work up to 70 hours per week on the project. how many of each type of ad should be produced to maximize the overall value to lassie foods

Answers: 3

continue

Business, 21.06.2019 23:30, trinitieu66

Which alternative accounting method allows farmers to record expenses and incomes in the year in which they sell their yield? gaap allows for the method, which permits farmers to subtract the expenses of producing the crop in the year in which they sell the yield and earn the revenue.

Answers: 3

continue

Business, 22.06.2019 08:30, laurabwhiddon

The production manager of rordan corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st quarter 2nd quarter 3rd quarter 4th quarter units to be produced 10,800 8,500 7,100 11,200 each unit requires 0.25 direct labor-hours, and direct laborers are paid $20.00 per hour. required: 1. prepare the company’s direct labor budget for the upcoming fiscal year. assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. 2. prepare the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is not adjusted each quarter. instead, assume that the company’s direct labor workforce consists of permanent employees who are guaranteed to be paid for at least 2,500 hours of work each quarter. if the number of required direct labor-hours is less than this number, the workers are paid for 2,500 hours anyway. any hours worked in excess of 2,500 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor.

Answers: 2

continue

Business, 22.06.2019 12:00, ddaaaeeee3503

Which of the following is one of the advantages primarily associated with a performance appraisal? (a) it protects employees against discrimination on the basis of race. (b) it motivates employees to work on their shortcomings. (c) it encourages employees to play the role of the whistle-blower. (d) it accurately measures the resources of the firm.

Answers: 2

continue

Do you know the correct answer?

Jackpot Mining Company operates a copper mine in central Montana. The company paid 1,000,000 in 201...