Business, 15.02.2021 20:00 CorsoGod

Jackpot Mining Company operates a copper mine in central Montana. The company paid 1,000,000 in 2016 for the mining site and spent an additional 600,000 to prepare the mine for extraction of the copper.
After the copper is extracted in approximately four years, the company is required to restore the land to its original condition , including repaving of roads and replacing a greenbelt.
The company has provided the following three cash flow possibilities for the restoration costs:
Cash outflowProbability
1. 300,00025%
2. 400,00040%
3. 600,00035%
To aid extraction, Jackpot purchased some new equipment on July 1, 2016, for $120,000.
After the copper is removed from this mine, the equipment will be the sold for an estimated residual amount of 20,000. There will be no residual value for the copper of mine.
The credit adjusted risk free rate of interest is 10%.
The company expects to extract 10 million pounds of copper from the mine.
Actual production was 1.6 million pounds in 2016 and 3 million pounds in 2017.
1. Compute the depletion and depreciation on the mine and mining for 2016 and 2017. The units of production method is used to calculate depreciation.
2. Discuss the accounting treatment of the depletion and depreciation on the mine and mining equipment.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 19:10

Robin hood has hired you as his new strategic consultant to him successfully transform his social change enterprise. robin has told you that he counting on your strategic management knowledge to him and his merrymen achieve their goals. discuss in detail what you think should be robin’s two primary strategic goals and continue by also explaining your analytical reasons that support your recommendations.

Answers: 3

Answer

Business, 22.06.2019 21:40

Rebel technology maintains its records using cash-basis accounting. during the year, the company received cash from customers, $43,000, and paid cash for salaries, $23,500. at the beginning of the year, customers owe rebel $1,000. by the end of the year, customers owe $6,600. at the beginning of the year, rebel owes salaries of $5,600. at the end of the year, rebel owes salaries of $3,300. determine cash-basis net income and accrual-basis net income for the year.

Answers: 2

Answer

Business, 23.06.2019 06:00

If a society decides to produce consumer goods from its available resources, it is answering the economic question

Answers: 1

Answer

Business, 23.06.2019 08:20

Marque a alternativa que apresenta somente as opções de financiamento com recursos internos: a) lucros, venda de ativos e recursos próprios. b) lucros, venda de ativos e redução no capital de giro. c) lucros, venda de ativos e recursos de familiares. d) lucros, venda de ativos e prorrogação nos prazos para receber os pagamentos dos clientes. e) lucros, venda de ativos e aumento do estoque de mercadorias.

Answers: 1

Answer

You know the right answer?

Jackpot Mining Company operates a copper mine in central Montana. The company paid 1,000,000 in 201...

Questions