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GuDViN [60]
2 years ago
14

Donny owns and leases a coal mine to brian. the lease agreement states that brian will pay donny $4 per ton royalty on coal mine

d. what is brian's percentage depletion deduction for the current year from the information given below? gross income from coal $250,000 income from trucking coal 20,000 royalty paid donny 30,000 taxable income on coal (excluding depletion) 40,000 coal depletion rate 10%
Business
1 answer:
Gnoma [55]2 years ago
5 0

Answer: $25,000

Explanation:

Given Data:

Gross income from coal = $250,000

Income from trucking coal = $20,000

Royalty paid to Donny = $30,000

Taxable income on call excluding depletion = $40,000

Coal depletion rate = 10%

Lease agreement = $4/ton

Therefore:

brian's percentage depletion deduction for the current year is

= gross income x coal depletion rate

= $250,000 x 0.1

=$25,000

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Cost-volume-profit analysis can also be used in making personal financial decisions. For example, the purchase of a new car is o
jek_recluse [69]

Answer:

A) 0.08; 0.12

B) 0.04

C) 150,000 miles

D) Insurance cost, carbon emission, Second hand value, Licensing fee, E. t. C

Explanation:

A)

What is the variable gasoline cost of going one mile in the hybrid car?

The variable gasoline cost = ( cost per gallon / total miles per gallon)

Cost per Gallon = $2.40

Miles per gallon(hybrid car) = 30

Variable gasoline cost(hybrid car) =( 2.40/30) = 0.08

What is the variable cost of going one mile in the traditional car?

The variable gasoline cost = ( cost per gallon / total miles per gallon)

Cost per Gallon = $2.40

Miles per gallon(traditional car) = 20

Variable gasoline cost(hybrid car) =( 2.40/20) = 0.12

B.) variable cost savings on a per-mile basis.

Variable cost difference (0.12 - 0.08) = 0.04

C.) break even point in miles

(additional fixed cost / cost saving per mile)

(6000 / 0.04) = 150,000 miles

D) other factors may include ;

Insurance cost

carbon emission

Second hand value

Licensing fee and so on

8 0
2 years ago
In 2018, the country of Brazil, had imports of $78.02 billion and had a favorable balance of trade. This means that Brazil had:_
rodikova [14]

Answer:

c. more than $78.02 billion in exports

Explanation:

The nation of Brazil had imports of $78.02 billion in 2018 and had a positive trade balance. This means that Brazil has exports of greater than $78.02 billion. That if a country's exports go beyond its imports, it is claimed that the country has a positive balance of trade. It indicates that Brazil has exports of greater than $78.02 billion.

Hence, the correct option is c.

3 0
2 years ago
Gilligan Co.'s bonds currently sell for $1,150. They have a 6.75% annual coupon rate and a 15-year maturity, and are callable in
AlladinOne [14]

Answer:

(E) 4.81%

Explanation:

See the image below to get the explanation

4 0
2 years ago
Scottish Company manufactures a variety of toys and games. John Chisholm, president, is disappointed in the sales of a new board
Schach [20]

Answer:

c. $110,000

Explanation:

The computation of profit (loss) from Option One is shown below:-

Profit (loss) from Option One =  Sold unit × (Cut the price - Variable cost) - Fixed cost

=  15,000 × ($70 - $56) - $100,000

= 15,000 × $14 - $100,000

= $210,000 - $100,000

= $110,000

Therefore for computing the profit (loss) from Option One we simply applied the above formula.

4 0
2 years ago
Last year Kruse Corp had $440,000 of assets (which is equal to its total invested capital), $403,000 of sales, $28,250 of net in
Brut [27]

Answer:

The reduction in assets would improve the ROE by 7.81%.

Explanation:

This can be calculated as follows:

Previous equity = (100% - Debt-to-total-capital ratio) * Previous total invested capital = (100% - 39%) * $440,000 = 61% * $440,000 = $268,400

Previous return on equity (ROE) = (Net income / Previous equity) * 100 = ($28,250 / $268,400) * 100 = 10.53%

New equity = (100% - Debt-to-total-capital ratio) * New total invested capital = (100% - 39%) * $252,500 = 61% * $252,500 = $154,025

New ROE = (Net income / New equity) * 100 = ($28,250 / $154,025) * 100 = 18.34%

Change in ROE = New ROE - Previous ROE = 18.34% - 10.53% = 7.81%

Since change in ROE is 7.81% and positive, this implies that the reduction in assets would improve the ROE by 7.81%.

5 0
2 years ago
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