Steel Rolling Company Purchased a Mine on Jan 1, 2015

question 17

Multiple Choice

Steel Rolling Company purchased a mine on Jan 1, 2015 for $500,000 and it is estimated to contain 30,000 tons of iron ore. There is no residual value. The company has extracted 2,500 tons of ore in 2015 and 3,800 tons of ore in 2016. What is the book value of the mine at the end of 2016? (Do not round your intermediate calculations) .

• A)$440,000
• B)$395,000
• C)$350,000
• D)$500,000

---

Definitions:

Total Revenues

The sum of all income generated by a company through its business activities, typically from the sale of goods and services before any costs or expenses are deducted.

Price-Inelastic

Describes a situation where the demand for a good or service is relatively unresponsive to changes in its price.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers over a given period.

Price-Elasticity Coefficients

Numerical values that measure the responsiveness of quantity demanded or supplied to a change in price; they help in assessing how price changes impact demand or supply levels.