subject
Business, 07.03.2020 04:32 multezemaleme

Jackpot Mining Company operates a copper mine in central Montana. The company paid $1,350,000 in 2018 for the mining site and spent an additional $670,000 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 (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.):

Cash Outflow Probability 1 $ 370,000 25% 2 470,000 45% 3 670,000 30%

To aid extraction, Jackpot purchased some new equipment on July 1, 2018, for $133,000. After the copper is removed from this mine, the equipment will be sold for an estimated residual amount of $26,000. There will be no residual value for the copper mine. The credit-adjusted risk-free rate of interest is 15%. The company expects to extract 10.7 million pounds of copper from the mine. Actual production was 2.3 million pounds in 2018 and 3.7 million pounds in 2019.

Required:

Compute depletion and depreciation on the mine and mining equipment for 2018 and 2019. The units-of-production method is used to calculate depreciation. (The expected format for rounding is presented in the appropriate rows of the table. Round your final answers to nearest whole dollar.)

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 07:30
Which of the following is an example of an unsought good? a. cameron purchases a new bike. b. jordan buys paper towels. c. taylor buys cupcakes from her favorite bakery. d. riley buys new windshield wipers for her car.
Answers: 3
question
Business, 22.06.2019 12:00
Select the correct answer. martha is a healer, a healthcare provider, and an experienced nurse. she wants to share her daily experiences, as well as her 12 years of work knowledge, with people who may be interested in health and healing. which mode of internet communication can martha use? a. wiki b. email c. message board d. chat e. blog
Answers: 2
question
Business, 22.06.2019 19:30
Dollar shave club is an ecommerce start-up that delivers razors to its subscribers by mail. by doing this, dollar shave club is using a(n) to disrupt an existing market.a. innovation ecosystem b. architectural innovation c. business model innovation d. incremental innovation
Answers: 2
question
Business, 22.06.2019 21:10
Krier industries has just completed its sales forecasts and its marketing department estimates that the company will sell 43,800 units during the upcoming year. in the past, management has maintained inventories of finished goods at approximately 3 months' sales. however, the estimated inventory at the start of the year of the budget period is only 7,300 units. sales occur evenly throughout the year. what is the estimated production level (units) for the first month of the upcoming budget year?
Answers: 3
You know the right answer?
Jackpot Mining Company operates a copper mine in central Montana. The company paid $1,350,000 in 201...
Questions
question
History, 26.01.2021 02:00
question
Mathematics, 26.01.2021 02:00
question
Mathematics, 26.01.2021 02:00
question
Physics, 26.01.2021 02:00
question
Biology, 26.01.2021 02:00
Questions on the website: 13722363