Suppose 100 Million People Consume Black Tea Every Year, and an Average

question 74

Short Answer

Suppose 100 million people consume black tea every year, and an average consumer consumes 8 kgs of tea at an average price of $3 per kg. Compute the total market potential for tea.

Identify and calculate different methods of depreciation for tangible assets.

Recognize and report the accumulated depletion and depreciation on the balance sheet.

Understand the role of residual value in the calculation of depreciation and its impact on the asset's book value.

Calculate depletion expense based on the usage of natural resources.