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Porter Resources Company acquired a tract of land containing an
extractable natural resource. Porter is required by its purchase
contract to restore the land to a condition suitable for recreational use
after it has extracted the natural resource. Geological surveys estimate
that the recoverable reserves will be 2,000,000 tons, and that the land
will have a value of $1,000,000 after restoration. Relevant cost
information follows:

Multiple Choice Question 110

In 2014, shop reported net income of $5.7 billion, net sales of $175
billion, and average total assets of $70 billion. What is Bargain shop's
return on total assets?

Multiple Choice Question 106

In 2006, Jarrett Company purchased a tract of land as a possible
future plant site. In January, 2014, valuable sulphur deposits were
discovered on adjoining property and Jarrett Company immediately
began explorations on its property. In December, 2014, after incurring
$800,000 in exploration costs, which were accumulated in an expense
account, Jarrett discovered sulphur deposits appraised at $4,500,000
more than the value of the land. To record the discovery of the
deposits, Jarrett should

Multiple Choice Question 66