C C Coal Company Purchased the Coal Rights in an Area

question 27

Essay

C C Coal Company purchased the coal rights in an area for $4,050,000.They estimated that the area contained 9,000,000 tons of coal.The first year of operations in the area yielded 110,000 tons of coal.What is the depletion cost per ton of coal? What is the depletion expense for this first year?

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Definitions:

Type A Orientation

A behavior pattern characterized by aggressiveness, competitiveness, urgency, and a constant struggle to achieve more in less time.

Achievement-oriented

A personal or organizational focus on setting and meeting high-performance standards and goals.

Type A Orientation

A personality trait characterized by competitiveness, urgency, aggressiveness, and a high degree of ambition and drive.

Relaxed

Describes a state of reduced tension or anxiety, often referring to a calmer approach in environments such as workplaces or social settings.