In april 2013, sparkle enterprises purchased the crimson mine at a cost of $18,000,000. the mine is estimated to contain 500,000 tons of ore with a residual value of $2,000,000 after mining operations are completed. during 2013, 120,000 tons of ore were removed from the mine and sold. in this situation:

a. the book value of the mine is $16,000,000 at the end of 2013.
b. the amount of depletion deducted from revenue during 2013 is $3,840,000.
c. the amount of depletion deducted from revenue during 2013 is $2,000,000.
d. the mine is classified as an intangible asset with in indefinite life and is not amortized.

The correct answer is B.

Explanation:

Giving the following information:

In April 2013, Sparkle Enterprises purchased the Crimson Mine for $18,000,000. The mine is estimated to contain 500,000 tons of ore with a residual value of $2,000,000 after mining operations are completed. During 2013, 120,000 tons of ore were removed from the mine and sold.

Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced

Annual depreciation= (16,000,000/500,000)*120,000= $3,840,000

the u.s. census bureau produces data on the population and economy nationwide. it can you to analyze the kind of people living in your neighborhood. it does not show you the market of people willing to buy your product or an existing market for your product. that will require more market research. the census bureau only gives you an insight to the demographics in your area.

answer; risk transference;