What is the maximum depletion allowance

Assignment Help Business Economics

Reference no: EM131809888

Mining recently began on a new deposit of 10 million metric tons of ore (2% nickel and 4% copper). Annual production of 350,000 metric tons begins this year. The market price of nickel is $3.75 per pound and $0.65 for copper. Mining operation costs are expected to be $0.50 per pound. XYZ Mining Company paid $600 million for the deposits. What is the maximum depletion allowance each year for the mine?

Reference no: EM131809888

Questions Cloud

What total cost to be allocated to the city department : Now, assume that fixed and variable costs were allocated separately. What is the total cost to be allocated to the city department with this method

Compute the depletion allowances for years 4 and beyond : After 3 years, the total available harvest for the original tract was reestimated at 180 million board-feet. Compute the depletion allowances for Years 4.

What is the book value after 4000 hours of operation : With units-of-production depreciation, what is the allowable depreciation rate per hour? What is the book value after 4000 hours of operation?

Review probability problem related to money : Suppose you bet a dollar on red, 25 times in a row, at roulette. Each time you win a dollar with probability 18/38, lose with probability 20/38.

What is the maximum depletion allowance : XYZ Mining Company paid $600 million for the deposits. What is the maximum depletion allowance each year for the mine?

State the cost formula for each mixed expense : Using the high-low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixed expense

Determine the units-of-production depreciation : Determine the units-of-production depreciation schedule for the equipment.

Compute the annual depletion on a cost basis : (a) Compute the annual depletion on a cost basis. (a) Compute the annual depletion on a percentage basis.

Probability-more than half voters in sample oppose measure : To estimate the percent of district voters who oppose a certain ballot measure, a survey organization takes a random sample of 200 voters from a district.

User Account

All Pages