Amount of depletion of expense on this well

Assignment Help Financial Accounting

Reference no: EM13863539

On April 1 2014, Marlin company purchased a producing oil well at a cash cost of $3,500,000, it is estimated that 500,000 of oil can be produced over the remaining life of the well. By december 31 2014, 25,000 of oil had been produced and sold. The amount of depletion of expense on this well for 2014 would be

a) 17,500

b) 200,000

c) 175,000

d) 12,000

Reference no: EM13863539

Questions Cloud

Mortgage interest expense : Heather and Terry have a mortgage on their primary residence of $750,000, and a mortgage on their vacation home of $410,000. In 2014, they incurred $46,400 of mortgage interest expense. How much, if any, of that interest is deductible on Schedule A?

How much of her medical expenses will she be able to deduct : Macy had a lot of medical expenses this year that were not covered by her insurance (either due to a deductible, co-insurance, or co-pay). Her un-reimbursed qualifying medical expenses total $8,356 and her AGI for 2014 is $45,000. Assuming she will i..

After tax cash inflow from disposal of the capital asset : The Alpha Beta Corporations disposes a capital asset with an original cost of $85,000 and accumulated depreciation of $54,500 for $25,000. Alpha Beta's tax rate is 40%. Calculate the after tax cash inflow from the disposal of the capital asset

Journal format the allowance for doubtful accounts : Prepare adjusting entries in the journal format the allowance for doubtful accounts should be increased by 1% of total revenue of $35,000 insurance expired during the year total $1,300 signed a 90-day note at 6% for $300,000 shown as notes payable. A..

Amount of depletion of expense on this well : On April 1 2014, Marlin company purchased a producing oil well at a cash cost of $3,500,000, it is estimated that 500,000 of oil can be produced over the remaining life of the well. By december 31 2014, 25,000 of oil had been produced and sold. The a..

Used straight line depreciation method : Reno company purchased equipment on January 1, 2012 for $82,000. The equipment is estimated to have a 5 year life and a salvage value of $5000. The company used straight line depreciation method.

Examples of contingent liabilities : Vacation pay and sick leaves are examples of contingent liabilities that a company generally should recognize on its financial assets. Rush Corporation borrowed $50,000 on Jan 1, 2014. The loan is for a five year period and has an annual interest rat..

Financing activities on the statement of cash flows : Indicate whether each of the following events would cause an inflow or an outflow of cash and whether it would affect the investing (I) or financing (F) activities on the statement of cash flows

Prepare general journal entries for each of the transactions : On January 1, 2014, Tom Davis paid $24,000 for 240 shares, and Jenny Coleman paid $12,000 for 120 shares of Repro Company, Inc., common stock. Prepare general journal entries for each of the transactions. Post the journal entries to into t-accounts. ..

User Account

All Pages