Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In January 2018, Ace Mining Corporation purchased a mineral mine for $4,200,000 with removable ore estimated by geological surveys at 2,500,000 tons. The property has

In January 2018, Ace Mining Corporation purchased a mineral mine for $4,200,000 with removable ore estimated by geological surveys at 2,500,000 tons. The property has an estimated (salvage) value of $400,000 after the ore has been extracted. Ace incurred $1,150,000 of development costs preparing the property for the extraction of ore. During 2018, 340,000 tons were removed and sold. For the year ended December 31, 2018 Ace should record what amount of depletion?

$516,800

$594,000

$456,000

$673,200

During 2017 the DLD Company had net income of $87,000. In addition, selected accounts showed the following changes:

Accounts Receivable $3,000 increase

Accounts Payable 1,000 increase

Buildings 4,000 decrease

Depreciation Expense 1,500 increase

Bonds Payable 8,000 increase

Gain on Sale of Equipment 5,000

What was the amount of cash provided by operating activities?

$82,000

$83,500

$91,000

$81,500

Question 12

Construction began on an office building on March 1. The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land, $1,800,000 was borrowed on March 1, 2017 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2017 was a $750,000, 12%, 6-year note payable dated January 1, 2017. The actual interest cost incurred during 2017 was:

$126,000

$252,000

$225,000

$210,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting And Reporting

Authors: Barry Elliott, Jamie Elliott

19th Edition

1292255994, 9781292255996

More Books

Students also viewed these Accounting questions