What should be the charge to depletion expense per ton

Assignment Help Financial Accounting
Reference no: EM132838693

Marigold Corp. acquired a tract of land containing an extractable natural resource. Marigold is required by its purchase contract to restore the land to a condition suitable for recreational use after it has extracted the natural resource. Geological surveys estimate that the recoverable reserves will be 2440000 tons, and that the land will have a value of $960000 after restoration.

Relevant cost information follows:

Land $7520000
Estimated restoration costs 1480000

Problem 1: If Marigold maintains no inventories of extracted material, what should be the charge to depletion expense per ton of extracted material?

Option 1: $3.69
Option 2: $3.08
Option 3: $3.30
Option 4: $2.69

Reference no: EM132838693

Questions Cloud

How the books you reference can enhance your instruction : Children's literature can be used to foster a child's early speech development. Name two children's books you could use in your classroom to build a child's.
Explain what csr is : Explain what CSR is. Name two examples of socially responsible companies you know and explain why you consider them so.
What is your best financial advice : Your friends, Jim and Joey (16) are twin brothers and just received a $1000 inheritance from a wealthy aunt. What is your best financial advice
Explain interesting things about regression : When you think about it, putting a regression model together is really not that difficult.
What should be the charge to depletion expense per ton : If Marigold maintains no inventories of extracted material, what should be the charge to depletion expense per ton of extracted material?
Explain process of assessments and related terminology : Description of the consultative role of the special educator in helping parents/guardians understand the process of assessments and related terminology
What are the main components of emotional intelligence : Which of these components would be most import for success in a sales job? Success as a person counsellor? Success as a teacher?
Differences between managing change and leading change : As a change leader, you can be a positive influence on change and making change happen, which strengthens your own career and professional capabilities.
Determine the company break-even point in number of lawns : Determine the company's break-even point in number of lawns serviced per month. All That Blooms charges $60 per treatment for the average single-family lawn.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd