Answer: For an explanation, please refer to the explanation section
Explanation:
recording a journal entry for Patel Products selling a delivery van priced at $20,000 with accumulated depreciation totaling $18,000, while receiving $2,000 cash from the buyer, results in:
December 29, 2019
Account title----- Cash----------Debit $2,000
Account title----Accumulated Depreciation-----Debit $18,000.
Account title------Delivery Van ----Credit $20,000
The equipment's book value at the sale was $2,000, reflecting its original cost of $20,000 adjusted by the accrued depreciation of $18,000. Since Patel received the same $2,000 from the sale of the delivery van, there is no profit from the disposal.
The calculated cash flow after taxes amounts to $9.63. The question outlines the annual dividends paid over four years, with values specified for each year. Taking into account the present values for these dividends enables us to determine the worth of the stock, leading to a final value of approximately $9.63.
Answer: $160,000
Explanation:
To find the depletion rate per ton:
= ( Cost - residual value) / Capacity in tons
= (960,000 - 0) / 240,000
= $4 per ton
During the first year, the extraction was 40,000 tons. Thus, the depletion amount is:
= 40,000 * 4
= $160,000
