MHB Industries Limited purchased a strip mine for cash on April 1, 2023 at a cost of $5,048,000. MHB expects to operate the mine for 10 years, at which it is legally required to restore the surrounding area to its original state. It is estimated that it will cost $471,000 to do this at the end of the mine’s useful life. The company’s year-end is December 31, and MHB follows ASPE.(a)Prepare the journal entry to record the purchase of the mine and to record the asset retirement obligation for the mine on April 1, 2023. Based on the effective interest rate of 5%, the present value of the asset retirement obligation (i.e., its fair value) on the date of acquisition is $289,153. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

MN obtained a government licence to operate a mine from 1 April 20X1. The licence requires that at the end of the mine’s useful life, all buildings must be removed from the site and the site landscaped. MN estimates that the cost of this decommissioning work will be $1,000,000 in 10 years’ time using a discount factor of 8%. A 10-year discount factor at 8% is 0.463. According to IAS 37 Provisions, Contingent Liabilities and Contingent Assets what is the provision which MN should recognise in its statement of financial position as at 31 March 20X2? A. $100,000 B. $463,000 C. $500,000 D. $1,000,000

Mohr Company purchases a machine at the beginning of the year at a cost of $38,000. The machine is depreciated using the straight-line method. The machine’s useful life is estimated to be 5 years with a $7,000 salvage value. The book value of the machine at the end of year 2 is:Multiple Choice$6,200.$25,600.$31,000.$12,400.$18,600.

B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $371,200 and has a 12-year life and no salvage value. B2B Company requires at least an 9% return on this investment. The expected annual income for each year from this equipment follows: (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)   Sales of new product $ 232,000Expenses  Materials, labor, and overhead (except depreciation) 81,000Depreciation—Equipment 30,933Selling, general, and administrative expenses 23,200Income $ 96,867(a) Compute the net present value of this investment.

B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $371,200 and has a 12-year life and no salvage value. B2B Company requires at least an 9% return on this investment. The expected annual income for each year from this equipment follows: (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)   Sales of new product $ 232,000Expenses  Materials, labor, and overhead (except depreciation) 81,000Depreciation—Equipment 30,933Selling, general, and administrative expenses 23,200Income $ 96,867(a) Compute the net present value of this investment.(b) Should the investment be accepted or rejected on the basis of net present value?

MFB Ltd had a Profit before tax GH¢30,000 from its retail stores and had the following transactions in the 2021 year of assessment:The following transactions were included before arriving at the profit before tax: Depreciation GH¢25,000, rent expense GH¢15,000, rent income GH¢7,000, Provision for doubful debts GH¢5,000, Specific Bad Debt GH¢10,000, General bad debt written off GH¢3,500, Total financial gain GH¢15,000, Total financial cost GH¢50,000. The following were also relevant but not taken consideration before arriving at the profit before tax; Unrelieved loss GH¢7,000, Capital allowance GH¢20,000. Determine the chargeable income after adjusting for financial gain and financial cost. A. GH¢61,500 B. GH¢51,500 C. GH¢70,500 D. GH¢53,500