Question

O'Keith Company purchased a mine on January 1, 2018, for $500,000. The mine is estimated to contain 38,000 tons of iron ore. There is no residual value. The business extracted and sold 12,500 tons of ore in 2018 and 5,800 tons of ore in 2019. What is the book value of the mine at the end of 2019? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.) O A. $500,000 O B. $259,172 O c. $424,000 O D. $350,000 Show transcribed image text On January 1, 2017 Hilldale Company had total assets of $370,000. During the year, the company purchased new machinery worth $81,000 and promised to pay the amount due after two years. Throughout the year, it earned revenue of $50,000 every month. Calculate the asset turnover ratio. O A. 1.46 times O B. 1.33 times O c. 1.23 times O D. 1.82 times

Answer 1

Ans. 1- (B):$259172

​​​​​in my calculation Book value comes to $259210 because decimal differences so we can take the nearest amount that is $259172

$500,000 Cart of mine Estimated. ore : 38000 tons. Book value end of 2018 .). Depreciation Cart of mine x. Extracted total oxe Eltimated ore ore zo scono x 125w 38,000 2016५५१५ Book Vakce end of year 2018 Scolar - Lendep. (164474) Book Value Bat year end 2018 = 335526. Depreciation for 2019. 2) SoooooX 5800 3)76316 Book Value at end of year 2018 335526-76316 _ $259,210 lutich is nearest to. (6) 289172

Ans. 2- (A) :1.46 times

O Auet turnoun ratio of Tatal Revenue Average total Aucts Tatal Revnues & 50,000 X 12 = $6,00,000 Average total AUCH I opening Dren t Ending Duets s). $ 370,000 t ( 370 protsiavo). 2). $ 410,500 Avenage turnover Retoy. 1.46. times. $600 aro $410,50 Answer :) LA) 1.46 times.