Choice Mining Co paid $9,000 for some land that was expected to have 50,000 units of a natural resource on it. Development costs amounted to $520. It was expected that the land would require $780 of reclamation costs after production. In the first year of mining, 5,000 units of the natural resource were mined. At the beginning of the second year, it was estimated that only 40,000 units of the
natural resource remained and estimated reclamation costs should be increased to $960. In the second year, 8,000 units were mined. What was the amount of depletion for the second year?
A) $1,714
B) $1,854
C) $1,890
D) $2,046
C
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Consider a one-year coupon bond that has a present value of $2,000. If the annual rate of discount is 5 percent, and the payment made at the end of each year is $140, the principal amount to be repaid at the end of one year is
A. $1,234.65. B. $1,363.32. C. $1,960.00. D. $2,000.00.
Which of the following does NOT provide an indication of liquidity?
A) quick ratio B) debt ratio C) average collection period D) inventory turnover
One primary reason concentration bank accounts are established is to:
A) reduce default risk. B) increase disbursement float. C) control disbursements for a specific purpose. D) pool funds. E) replace traditional lockboxes.
Which one of the following is not one of the major drivers of unethical managerial behavior?
A. Intense competitive pressures B. Overzealous pursuit of personal gain, wealth, and other selfish interests C. A company culture that puts the profitability and good business performance ahead of ethical behavior D. Heavy pressures on company managers to meet or beat earnings targets E. The attitude among management that "the business of business is business, not ethics"