Striker Mining company paid 13,500,000 for a parcel of land, ...

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Striker Mining company paid 13,500,000 for a parcel of land, including the mining rights. In addition, the company spent 1,850,000 to prepare the site for mining operations. When mining is completed, it is estimated that the residual value of the asset will be 1,000,000. Mining engineers estimate that the site contains 5,000,000 tons of coal. a. What is the average depletion cost per ton? b. If 335,000 tons were mined in the first year of operation, what is the amount of the depletion cost?

Question 2

On April 28, The Springfield Company purchased merchandise having a list price of 20,000 from Johnson Brothers. They were given a series of trade discounts of 15/10/5. The terms of the sale were 3/15 EOM. Freight charges of 600 were added to the invoice. a. What is the discount date? b. What is the amount due on the discount date?

[mcabuhat]

Answer to Question 1

a. 2.87
b. 961,450

Answer to Question 2

a. June 15
b. 14,698.95

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[Missbam101]

Excellent