Solution-Calculating units-of-activity depletion

Calculating units-of-activity depletion

Assignment Help Finance Basics

Reference no: EM131082533

A company pays $50,000,000 for an existing gold mine estimated to contain 1,000,000 ounces of gold. The mine has no salvage value, so the depletable cost of $50,000,000 is divided by 1,000,000 ounces to calculate a per-unit depletion cost of $50 per ounce. If the company extracts and then sells 100,000 ounces of gold during the year, depletion expense equals $5,000,000.

Calculating Units-of-Activity Depletion

Reference no: EM131082533

Questions Cloud

Net present value of investment : With a discount rate of 11.0%, what is the net present value (NPV) of this investment? Should you invest in this deal? Why or why not?

Should we drop urls alto gether from the messages : Try one of these alternatives and compare it to the approach of that section to see if it improves the classification.

Increased costs for businesses appreciably : Has it reduced fraud or increased fairness? Does it help or hurt U.S. capital markets? Has it increased costs for businesses appreciably? Overall, has SOX been a plus or a minus?

Discuss the role of the irb and the belmont report : Discuss the role of the IRB and the Belmont Report in ensuring ethical and safe treatment of patients during medical research. ine leadership. Next, select and evaluate one of the subprinciples discussed in Chapter 15 of the Locke text.

Calculating units-of-activity depletion : The mine has no salvage value, so the depletable cost of $50,000,000 is divided by 1,000,000 ounces to calculate a per-unit depletion cost of $50 per ounce. If the company extracts and then sells 100,000 ounces of gold during the year, depletion e..

Question regarding the control cash : Cash is a liquid, portable, and desirable asset. Therefore, a company must have adequate controls to prevent theft or other misuses of cash. What control activities can a company use to control cash?

Problem regarding the initial capital investment : Mutant & co. is currently considering investment in new project, which requires initial capital investment of $ 50, 00,000. Life period of this project is 5 years. Mutant & co. is expecting following cash inflow from the project.

Explore a wikibook on professional writing : For general information on formatting and organizing a business email message of this type, you might explore a wikibook on professional writing.

Find the continuation lines for a value : Next break the revised set of key value strings into the keys and values. Again use regular expressions to do this. Then create the names vector from these keys and values.

User Account

All Pages

Calculating units-of-activity depletion

Reference no: EM131082533

Reference no: EM131082533

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT