During 2010 a company purchased a mine at a cost of 4116000

Assignment Help Accounting Basics

Reference no: EM13566109

During 2010, a company purchased a mine at a cost of $4,116,000. The company spent an additional $720,000 getting the mine ready for its intended use. It is estimated that 420,000 tons of mineral can be removed from the mine and the residual value of the mine will be $720,000. During 2010, 57,000 tons of mineral were removed from the mine and 47,000 tons were sold. Which of the following statements is correct with respect to the accounting for the mine?

Reference no: EM13566109

Questions Cloud

Of the various ways to determine the cost of capital which : of the various ways to determine the cost of capital which is the most difficult to get right? explain your

Why is the roe a more appropriate proxy of wealth : why is the roe a more appropriate proxy of wealth maximization for smaller firms rather than for larger

Break-even quantity shapland inc has fixed operating costs : break-even quantity shapland inc. has fixed operating costs of 500000 and variable costs of 50 per unit. if it sells

Given the importance of proper system development what role : given the importance of proper system development what role should an accountant take in a development project? what

During 2010 a company purchased a mine at a cost of 4116000 : during 2010 a company purchased a mine at a cost of 4116000. the company spent an additional 720000 getting the mine

Explain why holders of a firms debt should insist on a : explain why holders of a firms debt should insist on a covenant that restricts the amount of cash dividends the firm

Xeller company makes electronic keyboards the practice : xeller company makes electronic keyboards. the practice model price is 220 and variable expenses are 190. the deluxe

Johnson company produced10000 units and sold 9000units in : 1rocky company has signed a contract that requires them to produce and sell gadgets for10 per unit. a recent study of

Xeller company makes electronic keyboards the practice : xeller company makes electronic keyboards. the practice model price is 220 and variable expenses are 190. the deluxe

User Account

All Pages