Balcom Corporation Acquires a Coal Mine at a Cost of $500,000.Intangible

question 109

Multiple Choice

Balcom Corporation acquires a coal mine at a cost of $500,000.Intangible development costs total $120,000.After extraction has occurred, Balcom must restore the property (estimated fair value of the obligation is $60,000) , after which it can be sold for $170,000.Balcom estimates that 5,000 tons of coal can be extracted.If 900 tons are extracted the first year, which of the following would be included in the journal entry to record depletion?

• A)Debit to Accumulated Depletion for $91,800
• B)Debit to Inventory for $91,800
• C)Credit to Inventory for $90,000
• D)Credit to Accumulated Depletion for $153,000

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Definitions:

Family Size

A demographic term referring to the number of individuals living in a single household, categorized by nuclear, extended, or other variations.

Behavioral Segmentation

The division of a market into groups based on consumer behaviors and patterns relating to the use of a product or service.

Psychographic Segmentation

This is a market segmentation strategy that divides consumers based on their personality traits, values, attitudes, interests, or lifestyles.

Behavioral Segmentation

The process of dividing a market into groups based on consumer behaviors, such as usage rate, purchase patterns, or brand loyalty.