Calculate the periodic depletion for first year of operation

Assignment Help Financial Management

Reference no: EM13805998

Black Gold Oil purchased a parcel of land containing an estimated 2 million barrels of crude oil for $850,000. Two oil wells were drilled at a cost of $340,000. The residual value of the property and equipment is $50,000. Calculate the periodic depletion for the first year of operation if 325,000 barrels were extracted.

Reference no: EM13805998

Questions Cloud

How would you transform the ptp to jsp : Packet Transmission Problem (PTP) and Job Scheduling Problems (JSP) are known NP-complete problems. How would you transform the PTP to JSP

The economy was experiencing high inflation : An increase in US imports would be counted in which section of the Balance of Payments statement for the US?

Considering production of a new cell phone : Samsung Electronics is considering production of a new cell phone. The project will require an investment of $20 million and generate $8 million per year over the next 3 years. If the phone is well-received (good condition), the project will produce ..

What will be its dividend payout ratio-unlevered beta : Global Inc. has a target capital structure that consists of 30% debt and 70% equity. The firm anticipates that its capital budget for the next year will be $1 million. If it reports net income of $900,000 and it follows a residual dividend policy, wh..

Calculate the periodic depletion for first year of operation : Black Gold Oil purchased a parcel of land containing an estimated 2 million barrels of crude oil for $850,000. Two oil wells were drilled at a cost of $340,000. The residual value of the property and equipment is $50,000. Calculate the periodic deple..

Explain synthesize and summarize the majority case : Synthesize and summarize the majority and dissenting opinions of the Court in this case. Analyze the ramifications of the decision on the policymaking of the other two branches of government.

How would you do it and what changes would you make : Describe how you use the database, and how you think the database makes that process easier. In addition, if you could redesign the database you described, how would you do it and what changes would you make

About the monthly payment : You are interested in purchasing a new automobile that costs $35,000. The dealership offers you a special financing rate of 6% APR (0.5%) per month for 48 months. Assuming that you do not make a down payment on the auto and you take the dealer's fina..

Disadvantages of having touch screen devices in workplace : Assess the value of touch screen devices related to human-computer interaction systems. Identify at least two advantages and two disadvantages of having touch screen devices in the workplace. Support your response by citing a quality resource

User Account

All Pages