An oil well is expected to produce 1,000,000 barrels of oil during its 3-year lifetime. The cost of the property, including drilling and preparing the well for pumping, is $3,500,000 . The company expects to sell the property for $100,000 once all of the oil has been pumped. If the company pumps 500,000 barrels in the first year, the entry to record the depletion of the asset that year would
include a
a. credit to Oil Well, $566,667; b. debit to
Depletion Expense – Oil Well, $1,700,000; c. credit to Accumulated Depletion
- Oil Well, $100,000; d. debit to Depletion Expense – Oil Well, $566,667;
e. none of these
B
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Intangible assets - patents Define what is meant by the term intangible asset, provide an example and identify typical controls over intangible assets
Robert Inc uses the standard costing method. The company's main product is a fine-quality headphones that normally takes 0.5 hour to produce. Normal annual capacity is 5,000 direct labor hours, and budgeted fixed overhead costs for the year were $8,750. During the year, the company produced and sold 5,800 units. Actual fixed overhead costs were $6,000. Using the information provided for Robert
Inc, compute the fixed overhead volume variance. A) $2,750 (F) B) $925 (U) C) $5,800 (U) D) $3,675 (U)
The primary function of the monthly income and expense plan is to assure that each month's income is not less than each month's expenses
Indicate whether the statement is true or false
Current City (CC) is a retail seller of television sets. CC sells Dhani a $5,000 large-screen, high-definition, plasma set on a retail installment security agreement in which he pays $100 down and agrees to pay the balance in equal installments. CC retains a security interest in the set, and perfects that interest by filing a financing statement centrally. Two months later, Dhani is in default on the payments to CC and is involuntarily petitioned into bankruptcy by other creditors. Discuss CC's right to repossess the TV set and whether CC has priority over the trustee in bankruptcy to any proceeds from the disposal of the set.
What will be an ideal response?