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In Year 1, West Virginia Mining Company Purchased a Coal

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In Year 1, West Virginia Mining Company purchased a coal mine that contained an estimated 1,200,000 tons of coal, of which 1,000,000 tons can be profitably extracted, for a cash price of $58,500,000. The company mined 50,000 tons of coal in Year 1.
Required:What is the amount of depletion to be recorded per ton of coal?What is the amount of depletion expense for Year 1?


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