What is the amount of the depletion cost

Assignment Help Financial Management

Reference no: EM132029917

All-That-Glitters Mining Company paid $52,000,000 for a parcel of land, including the gold mining rights. In addition, the company spent $7,515,000 to prepare the site for mining operations. It is estimated that the residual value of the asset will be $5,300,000. Geologists estimate the site contains a total of 235,000 ounces of gold.

a. What is the average depletion cost per ounce? Round your answer to the nearest cent. Use rounded answer value for subsequent calculations. $

b. If 16,200 ounces were mined in the first year of operation, what is the amount of the depletion cost? $

Reference no: EM132029917

Questions Cloud

What times does the ball pass through half the maximum : At what times does the ball pass through half the maximum height? Ignore air resistance and take g = 9.80 m/s2.

Complete the schedule and compute diluted earnings per share : Colson issued $2,100,000 of 8% convertible bonds at face value during 2014. Complete the schedule and compute diluted earnings per share for 2015

Compute the annual surrender cost index : Compute the annual surrender cost index per $1000 of life insurance at the end of 20 years. Compute the annual net payment cost index per $1000 of life.

Determining the sound with intensity : Given a sound with intensity of 2 x 10-5 watt/m2, how much the dB IL and with sound with a pressure at 0.2 Pa, how much is the dB SPL?

What is the amount of the depletion cost : What is the average depletion cost per ounce? what is the amount of the depletion cost?

Fundamental vibration corresponds to middle : A steel wire in a piano has a length of 0.5000 m and a mass of 3.600 10-3 kg. To what tension must this wire be stretched so that the fundamental vibration

Discuss linddun threat modeling approach : Discuss LINDDUN threat modeling approach. Identify and discuss the seminaries and differences between LINDDUN and STRIDE.

What was the amount of red supplies expense for the year : The cost of supplies purchased by the red company was $5500 during the year. What was the amount of red's supplies expense for the year

Calculate the security equilibrium rate of return : A particular security's default risk premium is 5 percent. For all securities, the inflation risk premium is 4.75 percent and the real risk-free rate is 9.50.

User Account

All Pages