Business
Engineering
Math
Science
Social Science
Cornerstones of Financial Accounti...
Solutions
Cornerstones of Financial Accounti...
Depletion of Natural Resources
Brandon Oil Company recently purchased oil and natural gas reserves in a remote part of Alaska for $1,850,000. Brandon spent $10,000,000 preparing the oil for extraction from the ground. Brandon estimates that 108,000,000 barrels of oil will be extracted from the ground. The land has a residual value of $20,000. During 2019, 15,000,000 barrels are extracted from the ground.
Required:
Calculate the amount of depletion taken in 2019. ( Note: Use two decimal points for calculations.)
As a natural resource is extracted from earth, their cost is appropriated to every unit of natural resource removed. The process of apportioning this cost in each period where natural resource is utilized is known as depletion.
To calculate:
the amount of depletion.
Depletion is calculated by a similar method to that of the units-of-production method of depreciation.
Depletion Rate =( Cost- Residual Value)/Recoverable Units
Depletion = Depletion Rate*Units recovered
Cost of asset = $18,50,000+10,000,000
=$11,850,000
Residual Value = $ 20000
Recove...
Chapter 7 Solutions
Additional Business Solutions
Find more solutions based on key concepts
Show solutions addUnder Armour: Current ratio The following year-end data were taken from recent balance sheets of Under Armour, ...
Financial & Managerial Accounting
Using the Internet, find and describe an Internet market exchange or Internet auction market. Your discussion s...
Accounting Information Systems
Entries for installment note transactions On the first day of the fiscal year, Shiller Company borrowed 85,000 ...
Corporate Financial Accounting
List and describe four determinants of a countrys productivity.
Brief Principles of Macroeconomics (MindTap Course List)
A sample of midterm grades for five students showed the following results: 72, 65, 82, 90, 76. Which of the fol...
STATISTICS F/BUSINESS+ECONOMICS-TEXT
BETA AND REQUIRED RATE OF RETURN A stock has a required return of 9%, the risk-free rate is 4.5%, and the marke...
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Define the word manager without using the word management in your definition.
Foundations of Business (MindTap Course List)
Imagine a society that produces military goods and consumer goods, which well call guns and butter. a. Draw a p...
Principles of Microeconomics (MindTap Course List)
What could be the career fallout of someone who is unwilling or unable to train to become a better communicator...
Essentials of Business Communication (MindTap Course List)
(International Trade) Why does international trade occur? What does it mean to run a deficit in the merchandise...
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
In Exercise 5, suppose that any incoming individual is equally likely to be assigned to any of the three statio...
Probability and Statistics for Engineering and the Sciences
What are the two main causes of market failure? Give an example of each.
Principles of Economics (MindTap Course List)
Using Past Information to Estimate Required Returns Use online resources to work on this chapter's questions. P...
Fundamentals of Financial Management (MindTap Course List)
Explain each of the following statements using supply-and-demand diagrams. a. When a cold snap hits Florida, th...
Principles of Macroeconomics (MindTap Course List)
UNEVEN CASH FLOW STREAM a. Find the present values of the following cash flow streams at a 5% discount rate. b....
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
The annual examination of Felton Companys financial statements by its external public accounting firm (auditors...
Financial And Managerial Accounting
Any potential changes in system requirements that are identified or suggested after the design phase must _____...
Fundamentals of Information Systems
Is NASA's KM system, as it exists now, a good way to combat the type of failures the agency has experienced in ...
Fundamentals of Information Systems
FIGURE P1.5 The File Structure for Problems 5-8 Identify and discuss the serious data redundancy problems exhib...
Database Systems: Design, Implementation, & Management
Create a Crows Foot ERD to include the following business rules for the ProdCo company: a. Each sales represent...
Database Systems: Design, Implementation, & Management
Who is responsible for risk management in an organization? Which community of interest usually takes the lead i...
Principles of Information Security (MindTap Course List)
Do research on the Web to learn more about Apples decision to withdraw from the EPEAT program and why it later ...
Principles of Information Systems (MindTap Course List)
What are some of the characteristics of a virtual team?
Principles of Information Systems (MindTap Course List)
In your own words, explain what is meant by the word polymer.
Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)
A circular bar AB of length L is fixed against rotation at the ends and loaded by a distributed torque t(x) tha...
Mechanics of Materials (MindTap Course List)
Write the X- and Z-axis coordinates for the part show n. Use the diametral method in the X-axis.
Precision Machining Technology (MindTap Course List)
State whether the following are true or false. a. Aeolian soils are transported and deposited by wind. b. Marbl...
Fundamentals of Geotechnical Engineering (MindTap Course List)
While diagnosing an electronic control system: Technician A turns the ignition off before disconnecting a conne...
Automotive Technology: A Systems Approach (MindTap Course List)
A systems analyst attended a weeklong workshop on structured analysis. When she returned to her job, she told h...
Systems Analysis and Design (Shelly Cashman Series) (MindTap Course List)
To what degree should the organizations values, mission, and objectives be integrated into the policy documents...
Management Of Information Security
The system is a large ship and everything inside it. The ship turns off its engines, and is floating in the oce...
Fundamentals of Chemical Engineering Thermodynamics (MindTap Course List)
Give the size, spacing, and direction of the ceiling joists in the workshop. __________ _______________________...
EBK ELECTRICAL WIRING RESIDENTIAL
Using a portable relay to locate an intermittent fault, how does the relay close?
Electric Motor Control
The grain-size characteristics of a soil are given in the following table. a. Draw the grain-size distribution ...
Principles of Geotechnical Engineering (MindTap Course List)
Plot a curve showing the fraction of feed exiting as extract in a trommel screen versus the speed of the tromme...
Solid Waste Engineering
For Probs. 4.61–4.68, (a) draw the free-body diagrams for the entire assembly (or structure) and each of its ...
International Edition---engineering Mechanics: Statics, 4th Edition
A PL 3 8 6 tension member is welded to a gusset plate as shown in Figure P3.2-2. The steel has a yield stress F...
Steel Design (Activate Learning with these NEW titles from Engineering!)
Technician A says that a 12-volt light bulb that draws 12 amps has a power output of 1 watt Technician B says t...
Automotive Technology
Describe the purpose of these Internet services and explain how each works: email, email lists, messaging, chat...
Enhanced Discovering Computers 2017 (Shelly Cashman Series) (MindTap Course List)
12.6 through 12.13 Determine the approximate axial forces, shears, and moments for all the members of the frame...
Structural Analysis
What kinds of issues might indicate a misconfigured ACL?
Network+ Guide to Networks (MindTap Course List)
