During 2019, a company purchased a mine at a cost of $4,251,000. The company spent an additional $690,000 getting the mine ready for its intended use. It is estimated that 390,000 tons of mineral can be removed from the mine and the residual value of the mine will be $690,000. During 2019, 54,000 tons of mineral were removed from the mine and 44,000 tons were sold. Which of the following statements is correct with respect to the accounting for the mine? (Do not round your intermediate calculations.) Multiple Choice A - The 2019 net income decreased $588,600 as a result of the mining during the year. B - The 2019 cost of goods sold was $479,600. C - The inventory of minerals was $588,600 at December 31, 2019. D - The book value of the mine decreased $479,600 during 2019.
During 2019, a company purchased a mine at a cost of $4,251,000. The company spent an additional $690,000 getting the mine ready for its intended use. It is estimated that 390,000 tons of mineral can be removed from the mine and the residual value of the mine will be $690,000. During 2019, 54,000 tons of mineral were removed from the mine and 44,000 tons were sold. Which of the following statements is correct with respect to the accounting for the mine? (Do not round your intermediate calculations.) Multiple Choice A - The 2019 net income decreased $588,600 as a result of the mining during the year. B - The 2019 cost of goods sold was $479,600. C - The inventory of minerals was $588,600 at December 31, 2019. D - The book value of the mine decreased $479,600 during 2019.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
During 2019, a company purchased a mine at a cost of $4,251,000. The company spent an additional $690,000 getting the mine ready for its intended use. It is estimated that 390,000 tons of mineral can be removed from the mine and the residual value of the mine will be $690,000. During 2019, 54,000 tons of mineral were removed from the mine and 44,000 tons were sold.
Which of the following statements is correct with respect to the accounting for the mine? (Do not round your intermediate calculations.)
Multiple Choice
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A - The 2019 net income decreased $588,600 as a result of the mining during the year.
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B - The 2019 cost of goods sold was $479,600.
-
C - The inventory of minerals was $588,600 at December 31, 2019.
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D - The book value of the mine decreased $479,600 during 2019.
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