A Coal Mine Was Acquired for $4,000,000

question 75

Multiple Choice

A coal mine was acquired for $4,000,000.No salvage value was expected and the number of tons of coal is estimated to be 2,000,000 tons.During for first year,200,000 tons of coal was mined and sold.The depletion expense is:

• A)$2,000,000.
• B)$200,000.
• C)$4,000,000.
• D)$400,000.

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Definitions:

After-Tax Net Income

The amount of profit remaining after all taxes have been deducted from total revenue.