Question : 131. Carmel Company acquires a mineral deposit at a cost of : 1225154

 

131. Carmel Company acquires a mineral deposit at a cost of $5,900,000. It incurs additional costs of $600,000 to access the deposit, which is estimated to contain 2,000,000 tons and is expected to take 5 years to extract. What journal entry would be needed to record the expense for the first year assuming 418,000 tons were mined? 

A. Debit Depletion Expense $1,233,100; credit Accumulated Depletion $1,233,100.

B. Debit Amortization Expense $1,358,500; credit Accumulated Amortization $1,358,500.

C. Debit Depreciation Expense $1,358,500; credit Accumulated Depreciation $1,358,500.

D. Debit Depletion Expense $1,358,500; credit Accumulated Depletion $1,358,500.

E. Debit Depreciation Expense $1,233,100; credit Accumulated Depreciation $1,233,100.

132. Monte Ray leases office space for $7,000 per month. On January 3, Monte Ray incurs $75,000 to improve his leased office space. These improvements are expected to yield benefits for 8 years. Ray has 6 years remaining on his lease. Compute the amount of expense that should be recorded the first year related to the improvements. 

A. $19,500.

B. $7,000.

C. $12,500.

D. $9,375.

E. $16,375.

133. Monte Ray leases office space for $7,000 per month. On January 3, Monte Ray incurs $75,000 to improve his leased office space. These improvements are expected to yield benefits for 8 years. Ray has 6 years remaining on his lease. What journal entry would be needed to record the expense for the first year related to the improvements? 

A. Debit Amortization Expense $12,500; credit Accumulated Amortization $12,500.

B. Debit Depletion Expense $12,500; credit Accumulated Depletion $12,500.

C. Debit Depreciation Expense $12,500; credit Accumulated Depreciation $12,500.

D. Debit Depletion Expense $9,375; credit Accumulated Depletion $9,375.

E. Debit Amortization Expense $9,375; credit Accumulated Amortization $9,375.

134. Cambria owns equipment that cost $93,500 with accumulated depreciation of $64,000. Cambria asks $35,000 for the equipment but sells the equipment for $33,000. Compute the amount of gain or loss on the sale. 

A. $3,500 loss.

B. $5,500 gain.

C. $5,500 loss.

D. $3,000 gain.

E. $3,500 gain.

135. Cambria owns equipment that cost $93,500 with accumulated depreciation of $64,000. Cambria asks $35,000 for the equipment but sells the equipment for $33,000. Compute the amount of gain or loss on the sale. The journal entry to record the disposal of the asset would involve all of the following except: 

A. Debit Accumulated Depreciation $64,000.

B. Credit Equipment $93,500.

C. Debit Loss on Disposal of Equipment $3,500.

D. Credit Gain on Disposal of Equipment $3,500.

E. Debit Cash $33,000.

136. Cambria Company reports net sales of $4,315 million; cost of goods sold of $2,808 million; net income of $283 million; and average total assets of $2,136. Compute its total asset turnover. 

A. 1.31.

B. 2.02.

C. 13.

D. 76.

E. 50.

137. Big River Rafting pays $310,000 plus $15,000 in closing costs to buy out a competitor. The real estate consists of land appraised at $105,000, a building appraised at $210,000, and equipment appraised at $35,000. Compute the cost that should be allocated to the building. 

A. $93,000.

B. $186,000.

C. $32,500.

D. $195,000.

E. $97,500.

138. Big River Rafting pays $310,000 plus $15,000 in closing costs to buy out a competitor. The real estate consists of land appraised at $105,000, a building appraised at $210,000, and equipment appraised at $35,000. Compute the cost that should be allocated to the land. 

A. $93,000.

B. $186,000.

C. $32,500.

D. $195,000.

E. $97,500.

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more