If you were a manager at a coal mine which method would you prefer? (Fair value...
If you were a manager at a coal mine which method would you prefer? (Fair value or Book value)
Why?
Homework Answers
It is preferable to go with Fair value or Net realisable value which ever is lower even the standards on accounting say the same to value the coal mine with FV OR NRV
Reason :- its appropriate to value coal mine value with fair value because there are many reason which effect the Price from time to time.
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If you were a manager at a coal mine which method would you
prefer? (Fair value...
In February 2019, Noll purchased a coal mine at a cost of $3,000,000. The mine is...
In February 2019, Noll purchased a coal mine at a cost of $3,000,000. The mine is estimated to contain 200,000 tons of coal and to have a residual value of $500,000 after mining operations are completed. During 2019, a total of 20,000 tons of coal were removed from the mine but of that only 5,000 sold. What journal entry would be required to record depletion in 2019?
The Consolidated Mining Company bought the Lowly Coal Mine for $11,600,000 with a residual value of...
The Consolidated Mining Company bought the Lowly Coal Mine for $11,600,000 with a residual value of $1,600,000. The company believes Lowly Mine will yield 200,000 tons of coal over the life ot O00 002e 6am69 26/1 qinenenhs9 ma98 sonoa the mine. THIS year, Lowly hasmiped 75,000 tons of coal, sdheled sg ginsqo annO 15 a.c00-0er o og optheA What is the RATE of depletion for the Lowly Coal Mine? 8 PTS 6EIAo led Tei opledlstigeo4 qo 1iert ho 3newolle fanstnr...
of the three theoretical perspective which one would you prefer to use if you were a...
of the three theoretical perspective which one would you prefer to use if you were a sociologist?why
Calegari Mining paid $2 million to obtain the rights to operate a coal mine in Tennessee....
Calegari Mining paid $2 million to obtain the rights to operate a coal mine in Tennessee. Costs of exploring for the coal deposit totaled $1,500,000, and development costs of $5 million were incurred in preparing the mine for extraction, which began on January 2, 2018. After the coal is extracted in approximately five years, Calegari is obligated to restore the land to its original condition. Assume the incremental borrowing rate (interest rate) of the company is 7 %. The company's...
Vaughn Manufacturing acquires a coal mine at a cost of $1870000. Intangible development costs total $354000....
Vaughn Manufacturing acquires a coal mine at a cost of $1870000. Intangible development costs total $354000. After extraction has occurred, Vaughn must restore the property (estimated fair value of the obligation is $188000), after which it can be sold for $220000. Vaughn estimates that 6000 tons of coal can be extracted. What is the amount of depletion per ton? $312 $402 $365 $330
You are called to the scene of a large explosion at a local coal mine. Thankfully,...
You are called to the scene of a large explosion at a local coal mine. Thankfully, the mine is an open strip mine, and the explosion took place during a part of the shift where there were not a lot of people present. However, 4 mine workers were still killed and another 11 seriously injured. You know that the coal mine uses explosives to blast coal out of the surface, but there was not a blast scheduled to take place...
Sheridan Company acquires a coal mine at a cost of $1750000. Intangible development costs total $358000....
Sheridan Company acquires a coal mine at a cost of $1750000. Intangible development costs total $358000. After extraction has occurred. Sheridan must restore the property estimated fair value of the obligation is $190000), after which it can be sold for $202000. Sheridan estimates that 5000 tons of coal can be extracted. What is the amount of depletion per ton? O $160 O $384 O $350 O $419
Question 2 Wildhorse Corporation acquires a coal mine at a cost of $472,000. Intangible development costs...
Question 2 Wildhorse Corporation acquires a coal mine at a cost of $472,000. Intangible development costs total $118,000. After extraction has occurred, Wildhorse must restore the property (estimated fair value of the obligation is $94,400), after which it can be sold for $188,800. Wildhorse estimates that 4,720 tons of coal can be extracted. If 826 tons are extracted the first year, prepare the journal entry to record depletion. (If no entry is required, select "No entry" for the account titles...
3. As a manager, which learning percentage would you prefer (all other things being equal), 1 10%...
3. As a manager, which learning percentage would you prefer (all other things being equal), 1 10% or 60%? Would it change your answer if you found out that your competition has an average learning percentage of 55%? Explain your position for both scenarios.
3. As a manager, which learning percentage would you prefer (all other things being equal), 1 10% or 60%? Would it change your answer if you found out that your competition has an average learning percentage...
Marigold Corp. acquires a coal mine at a cost of $1790000. Intangible development costs total $358000....
Marigold Corp. acquires a coal mine at a cost of $1790000. Intangible development costs total $358000. After extraction has occurred, Marigold must restore the property (estimated fair value of the obligation is $188000), after which it can be sold for $216000. Marigold Imates that 7000 tons of coal can be extracted. What is the amount of depletion per ton? $303 $256 $268 $334 Current Attempt in Progress On January 1, 2017, Oriole Company purchased a new machine for $4220000. The...
The Consolidated Mining Company bought the Lowly Coal Mine for $11,600,000 with a residual value of $1,600,000. The company believes Lowly Mine will yield 200,000 tons of coal over the life ot O00 002e 6am69 26/1 qinenenhs9 ma98 sonoa the mine. THIS year, Lowly hasmiped 75,000 tons of coal, sdheled sg ginsqo annO 15 a.c00-0er o og optheA What is the RATE of depletion for the Lowly Coal Mine? 8 PTS 6EIAo led Tei opledlstigeo4 qo 1iert ho 3newolle fanstnr...
Calegari Mining paid $2 million to obtain the rights to operate a coal mine in Tennessee. Costs of exploring for the coal deposit totaled $1,500,000, and development costs of $5 million were incurred in preparing the mine for extraction, which began on January 2, 2018. After the coal is extracted in approximately five years, Calegari is obligated to restore the land to its original condition. Assume the incremental borrowing rate (interest rate) of the company is 7 %. The company's...
Sheridan Company acquires a coal mine at a cost of $1750000. Intangible development costs total $358000. After extraction has occurred. Sheridan must restore the property estimated fair value of the obligation is $190000), after which it can be sold for $202000. Sheridan estimates that 5000 tons of coal can be extracted. What is the amount of depletion per ton? O $160 O $384 O $350 O $419
Question 2 Wildhorse Corporation acquires a coal mine at a cost of $472,000. Intangible development costs total $118,000. After extraction has occurred, Wildhorse must restore the property (estimated fair value of the obligation is $94,400), after which it can be sold for $188,800. Wildhorse estimates that 4,720 tons of coal can be extracted. If 826 tons are extracted the first year, prepare the journal entry to record depletion. (If no entry is required, select "No entry" for the account titles...
3. As a manager, which learning percentage would you prefer (all other things being equal), 1 10% or 60%? Would it change your answer if you found out that your competition has an average learning percentage of 55%? Explain your position for both scenarios.
3. As a manager, which learning percentage would you prefer (all other things being equal), 1 10% or 60%? Would it change your answer if you found out that your competition has an average learning percentage...
Marigold Corp. acquires a coal mine at a cost of $1790000. Intangible development costs total $358000. After extraction has occurred, Marigold must restore the property (estimated fair value of the obligation is $188000), after which it can be sold for $216000. Marigold Imates that 7000 tons of coal can be extracted. What is the amount of depletion per ton? $303 $256 $268 $334 Current Attempt in Progress On January 1, 2017, Oriole Company purchased a new machine for $4220000. The...
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