$156,000DQuestion 11Marigold Company acquired a tract of land containing an extractable natural resource. Marigold is required by the purchase contract to restore the land to a condition suitable for recreational use after has extracted thewrveys estimate that the recoverable reserves will be 4,910.000 tons and that the land will have a value 0000 after restoration, Relevant cost information followsGeologic$6,334,000Estimated restoration costs $ 1.130,000Marigold maintains no inventories of extracted material what should be the charge to depletion expense perof extracted material?Ⓒ $1.29$1.52$1.60Ⓒ $1.40Question 121 ptsSunland Co. has 3.220 units of item X in its inventory as of 1/1/2025. unit cost is $3.00 each. It sells 1.590 units of X on 1/11/2025, purchases 4.180 units at $3.35 on 1/22/2025, then sells 1,450 units on 1/25/2025. What is the COGS for the 1/25sales using moving average?The moving average unit cost of X inventory at January 31, 2025 is$4858$4.252Ⓒ $4.715Ⓒ $4.350

Answered: $156,000 DQuestion 11 Marigold Company…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. The initial cost of a paint sand mill, including its installation is P 700,000.00. The BIR approved life of this machine is 19 years for depreciation. The estimated salvage value of the mill is P8,000.00 and the cost of dismantling is estimated to be P 5,000.00. Using straight line depreciation, what is the book value of the machine at the end of six years? 2. Equipment bought for P 87,000.00 is expected to last for 24 years. If the scrap value after 20 years is P 60,000.00. How much is the depreciation for year 12? 3. Determine the rate of depreciation, the total depreciation up to the end of the 6th year and the book value at the end of 6 years for an asset that cost P 16,000.00 new and has an es mated scrap value of P 2,000.00 at the end of 10 years by the double declining balance method. 4. A firm bought an equipment for P 58,000.00. Other expenses inclu ding installation amounted to P 2,000.00. The equipment is expected to have a life of 8 years with a salvage of 10% of the…
The following relates to a proposed equipment purchase: Cost $160,000 Salvage value $6,500 Estimated useful life 4 years Annual net cash flows $ 54,100 Straight-line Depreciation method Ignoring income taxes, the annual net income amount used to calculate the accounting rate of return is: Multiple Choice $52,475 $92,475 $17,350 O $15,725
Cost of a Fixed Asset Borges Inc. recently purchased land to use for the construction of its new manufacturing facility and incurred the following costs: purchase price, $83,000; interest charges, $500; real estate commissions, $4,800; delinquent property taxes, $1,500; closing costs, $3,300; and clearing and grading of the land, $8,100. Required: Determine the cost of the land. X Feedback Check My Work The cost of a fixed asset is any expenditure necessary to acquire the asset and to prepare the asset for use. These expenditures are said to be capitalized. screen rec
machine coating $250,000 with a five your life and animated $25,000 salvege valum is installed in Oun Compenys factory on Jerury 1. The toory marege stimates the machine will produce 400,000 units of product during ita ife. It actually produces the following units year 1-100,000, y 2-120,000 and year 3-20,000 units ppare depreciation schedules computing depreciation for the first 3 years under the straight-line method and urits of production methed.
A) A cash generation unit holds the following assets: GH₵ Goodwill 60,000 Patent right120,000 Property, Plant and Equipment (PPE)180,000 360,000 An annual impairment review is required as the cash-generating unit contains goodwill The most recent review assesses its recoverable amount to be GH₵ 270,000 Required: Determine how the impairment loss will be allocated
Required information [The following information applies to the questions displayed below.] Montego Production Company is considering an investment in new machinery for its factory. Various information about the proposed investment follows: Initial investment Useful life Salvage value Annual net income generated Montego's cost of capital Assume straight line depreciation method is used. Help Montego evaluate this project by calculating each of the following: $ 860,000 6 years Net Present Value $ 20,000 $ 66,000 11% Required: 4. Recalculate Montego's NPV assuming its cost of capital is 12 percent. (Future Value of $1, Present Value of $1. Future Value Annuity of $1, Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided. Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.
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Materials used in research and development projects $4,500 Equipment acquired that will have alternative future uses in future R&D projects for five years 1,500 Personnel costs of employees involved in R&D projects 5,500 Consulting fees paid to outsiders for R&D projects 2,800 Indirect costs reasonably allocable to R&D projects 250 Legal fees associated with registration of a patent resulting from a 2020 R&D project 2,500 Required: Compute the amount of R&D costs that should be classified as expenses in determining 2020 net income.$fill in the blank 1
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Exercise 10-26 (Algo) Research and development [LO10-8] In 2021, Space Technology Company modified its model Z2 satellite to incorporate a new communication device. The company made the following expenditures: Basic research to develop the technology Engineering design work Development of a prototype device Acquisition of equipment Testing and modification of the prototype Legal and other fees for patent application on the new communication system Legal fees for successful defense of the new patent $2,700,000 820,000 440,000 74,000 340,000 54,000 34,000 $4,462,000 Total The equipment will be used on this and other research projects. Depreciation on the equipment for 2021 is $24,000. During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all of the above as costs of the patent. Management contends that the device simply represents an improvement of the existing communication system of the satellite and, therefore, should be…
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