Use the Following Information for Questions

question 31

Multiple Choice

Use the following information for questions

-In 2004, Miles Company purchased a tract of land as a possible future plant site.In January, 2010, valuable sulphur deposits were discovered on adjoining property and Minton Company immediately began explorations on its property.In December, 2010, after incurring $500,000 in exploration costs that were accumulated in an expense account, Miles discovered sulphur deposits appraised at $2.5 million more than the value of the land.To record the discovery of the deposits, Miles should

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Definitions:

Treasury Bonds

Long-term government bonds issued by the U.S. Treasury, typically with a maturity of 20 to 30 years and offering periodic interest payments.

Inflation Protection

Financial strategies or instruments designed to protect investors from the erosive effect of inflation on investments and purchasing power.

U.K. Stock Index

A measurement of the performance of the stock market in the United Kingdom, often represented by indices such as the FTSE 100.

FTSE

An acronym for the Financial Times Stock Exchange, referring to major stock market indices such as the FTSE 100 in the United Kingdom.