COLLEGE PHYSICS-ACHIEVE AC (1-TERM)
3rd Edition
ISBN: 9781319453916
Author: Freedman
Publisher: MAC HIGHER
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Chapter 5, Problem 8QAP
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Nicole organized a new corporation. The corporation began business on April 1 of year 1. She made the following
expenditures associated with getting the corporation started:
Expense
Date
Amount
Attorney fees for articles of incorporation
February 10 $ 40,500
March 1-March 30 wages
March 30
6,550
March 1-March 30 rent
Stock issuance costs
March 30
2,850
April 1-May 30 wages
Note: Leave no answer blank. Enter zero if applicable.
April 1
May 30
24,000
16,375
c. What amount can the corporation deduct as amortization expense for the organizational expenditures and for the start-up costs for
year 1 [not including the amount determined in part (b)]?
Note: Round intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.
Start-up costs amortized
Organizational expenditures amortized
Last Chance Mine (LCM) purchased a coal deposit for $2,918,300. It estimated it would extract 18,950 tons of coal from the
deposit. LCM mined the coal and sold it, reporting gross receipts of $1.24 million, $13 million, and $11 million for years 1
through 3, respectively. During years 1-3, LCM reported net income (loss) from the coal deposit activity in the amount of
($11,400), $550,000, and $502,500, respectively. In years 1-3, LCM extracted 19,950 tons of coal as follows:
(1) Tons of
Coal
18,950
Depletion
(2) Basis (2)(1) Rate
$2,918,300 $154.00
Tons Extracted per Year
Year 1
4,500
Year 2
8,850
Year 3
6,600
Note: Leave no answer blank. Enter zero if applicable. Enter your answers in dollars and not in millions of dollars.
a. What is LCM's cost depletion for years 1, 2, and 3?
Cost Depletion
Year 1
Year 2
Year 3
Consider the following equation.
log1/9'
=6
Find the value of x.
Round your answer to the nearest thousandth.
x =
✓
Chapter 5 Solutions
COLLEGE PHYSICS-ACHIEVE AC (1-TERM)
Ch. 5 - Prob. 1QAPCh. 5 - Prob. 2QAPCh. 5 - Prob. 3QAPCh. 5 - Prob. 4QAPCh. 5 - Prob. 5QAPCh. 5 - Prob. 6QAPCh. 5 - Prob. 7QAPCh. 5 - Prob. 8QAPCh. 5 - Prob. 9QAPCh. 5 - Prob. 10QAP
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