GoodResources Incurred the Following Costs How Much Would Be Capitalized as "Property, Plant or Equipment

question 60

Multiple Choice

GoodResources incurred the following costs: $$\begin{array} { | l | c | c | c | } \hline \text { Mine Site } & \begin{array} { c } \text { Costsincurred in } \\\text { exploration and } \\\text { evaluation }\end{array} & \begin{array} { c } \text { Costs incurred in } \\\text { development }\end{array} & \text { Status at year-end } \\\hline \text { Alpha } & 300,000 & 100,000 & \begin{array} { c } \text { Producing } @ 5 \% \text { of } \\\text { reserves }\end{array} \\\hline \text { Beta } & 200,000 & & \text { Abandoned } \\\hline \text { Zeta } & 100,000 & 200,000 & \text { In development } \\\hline\end{array}$$ How much would be capitalized as "property, plant or equipment" under the successful efforts method?

• A)$100,000
• B)$200,000
• C)$300,000
• D)$700,000

Recognize the importance of linking business strategy, performance management, and compensation.

Identify various types of performance appraisal systems and their effectiveness.

Understand the importance of objective and subjective measures in performance evaluation.

Identify biases in performance evaluation and strategies to mitigate them.

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Definitions:

Gasoline

A refined petroleum product used as fuel in internal combustion engines.

Market Size

The total potential sales volume or number of consumers available to a product or service within a given market.

Tax on Sellers

A financial charge imposed on sellers of goods or services, which can affect the supply and pricing of those goods or services.

Tax on Buyers

A levy imposed on consumers by the government, which typically raises the purchase price of goods and services, affecting demand.