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1. What is the allowable depletion charge using the percentage depletion method for year 1 only of the salt mine investment described below. The applicable rate for the percentage depletion method is 10%. Cost to acquire mine rights = $30,000
Estimated mine size = 2,000,000 pounds
Selling price = $0.18 per pound in year 1
Amount sold in year 1 = 700,000 pounds
Operating cost in year 1 = $104,000
2. A parcel of land in a coastal town was bought for $200,000 by Donald Crump in 2006 and a commercial building was built at a cost of $2M and opened for business in March 2007. The depreciation charge for the property in year 2007 is?
A manufacturer of computer chips has a computer hardware company as its largest customer. The computer hardware company requires all of its chips to meet specifications of 1.2 cm. The vice-president of manufacturing, concerned about a possible loss o..
If we assume that a given bus market is in competition which charges a flat fare of N$1, and if the formula for the total demand (in thousands) in the market is given by the equation:
Illustrate what do you expect would happen to coffee consumption? In what direction would the CPI move, ceteris paribus? Would that change correctly reflect the impact on consumers' welfare? Explain briefly.
Compute the resulting equilibrium price quantity combination for every industry. Illustrate your answer with a suitable graph.
Suppose the Canadian economy, on a fixed exchange rate, has a real growth rate of 2% and is in equilibrium with an inflation rate of 10% and a risk premium of 1%. Suppose changes in the U.S. cause its real rate of interest to increase from 3% to 4% a..
How many cases of Robert Mondavi Private Select were sold each year from 2005-2008? a. Construct a table showing the total number of cases sold each year. b. Construct a bar graph showing the total number of cases sold each year. What is the trend in..
Red Valve Co. of Carnegie, Pennsylvania, makes a control pinch valve that provides accurate, repeatable control of abrasive and corrosive slurries, outlasting gate, plug, ball, and even satellite coated valves. How much can the company afford to spen..
______ signals that a downturn is coming, and is a condition to be expected at the peak of the business cycle.
For each of the following, predict the effects on the equilibrium levels of aggregate output (Y) and the interest rate (r). Be sure you make predictions for both Y and r! During 2000, the Federal Reserve was tightening monetary policy in an attempt t..
When the price of wheat rises, the quantity of when demanded falls, and when price of wheat falls, the quantity of wheat demanded rises. Therefore, the demand for wheat is not a horizontal line.”
Draw the real labor demand curve for each country.
Suppose the real interest rate is 3%, the real growth rate is 2%, the money multiplier is 4, banking innovations are decreasing the demand for money by 1% per year and the money supply is growing at 10% per year. What should be the price of a T-bill ..
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