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Extractor Ltd Has Carried Forward Costs of $16 Million Relating

question 57

Multiple Choice

Extractor Ltd has carried forward costs of $16 million relating to a gold mine in Western Australia.It owns the site and has completed the first year of production.The revenues from the year's sales are 12% of the total expected revenues based on expected future sales and prices.Five thousand tonnes of gold-bearing deposits were mined during the period out of a total estimate of 70 000 tonnes of reserves.It is expected that it will take 20 years to fully deplete the existing reserves.How much of the carried-forward costs should be allocated to production this period (round to the nearest dollar) ?

Identify the elements necessary for the enforceability of promises or gifts.

Understand the distinctions between lost, mislaid, and abandoned property.

Recognize the criteria and legal significance of different types of gifts (inter vivos, causa mortis).

Understand the role of contracts in the transfer of property and title.

Definitions:

Sample Means

The average values calculated from a sample of data, used to estimate the mean of the entire population.

Defective

Pertains to items or products that fail to meet the required standards or specifications.

Nondefective

Referring to items or products that meet the required quality standards and are free of defects.

Control Charts

Tools used in statistical process control to monitor the consistency of processes over time and identify variances.