Montana mining co. (mmc) paid 200 million for the right to explore and extract rare metals from land owned by the state of montana. to obtain the rights, mmc agreed to restore the land to a suitable condition for other uses after its exploration and extraction activities. mmc incurred exploration and development cost of $60 million. mmc has a credit-adjusted risk free interest rate of 7%. it estimates the possible cash flows for restoring the land, 3 years after extraction activities begin, as follows: cash outflow probability$10 million 60%$30 million 40%a. the asset retirement obligation (rounded) that should be recognized at the beginning of the extraction activities is? b. the asset retirement obligation (rounded) that should be reported on the balanace sheet one year after activities begin is?
Answers: 3
Another question on Business
Business, 22.06.2019 02:50
Seattle bank’s start-up division establishes new branch banks. each branch opens with three tellers. total teller cost per branch is $96,000 per year. the three tellers combined can process up to 90,000 customer transactions per year. if a branch does not attain a volume of at least 60,000 transactions during its first year of operations, it is closed. if the demand for services exceeds 90,000 transactions, an additional teller is hired and the branch is transferred from the start-up division to regular operations. required what is the relevant range of activity for new branch banks
Answers: 2
Business, 22.06.2019 08:00
Why is it vital to maintain a designer worksheet? a. it separates the designs chosen for the season from those rejected by the company. b. it keeps a record of all designs created by the designer for a season. c. it charts out the development of an entire line through the season and beyond. d. it tracks the development of a design along with costing and production details. done
Answers: 1
Business, 22.06.2019 09:50
For each of the following users of financial accounting information and managerial accounting information, specify whether the user would primarily use financial accounting information or managerial accounting information or both: 1. sec examiner 2. bookkeeping department 3. division controller 4. external auditor (public accounting firm) 5. loan officer at the company's bank 6. state tax agency auditor 7. board of directors 8. manager of the service department 9. wall street analyst 10. internal auditor 11. potential investors 12, current stockholders 13. reporter from the wall street journal 14. regional division managers
Answers: 1
You know the right answer?
Montana mining co. (mmc) paid 200 million for the right to explore and extract rare metals from land...
Questions
Mathematics, 20.04.2021 03:10
Chemistry, 20.04.2021 03:10
Mathematics, 20.04.2021 03:10
Health, 20.04.2021 03:10
Chemistry, 20.04.2021 03:10
Mathematics, 20.04.2021 03:10
Mathematics, 20.04.2021 03:10
Mathematics, 20.04.2021 03:10
Mathematics, 20.04.2021 03:10
English, 20.04.2021 03:10
Chemistry, 20.04.2021 03:10
