A house is generally considered an appreciating asset because it may increase in value over time. Appreciation is an increase in the value of an asset over time. The increase of the value of the house may occur for a number of reasons, including increased demand or weakening supply, or as a result of changes in inflation or interest rates. One example would be: the neighborhood became very famous, so the value of the houses there will increase, because the demand will increase.
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A pension fun act as an investor by (B) The company invests the money collected from employers and/or employees.
Answer:
total cost of mine = $1,400,000 + $400,000 = $1,800,000
estimed number of tons of ore = 1,000,000
residual value of land at the end of the mine = $200,000
depletion expenses per ton of ore = ($1,800,000 - $200,000)/1,000,000
= $1,600,000/1,000,000
= $1.6/ton
total depletion expenses for the first year = Ddepletion expenses per ton x number of ton of ore produced
= $1.6 x 180,000
= $288,000
Explanation:
