A Coal Mine Costs $1,000,000 and Is Estimated to Hold

question 42

Multiple Choice

A coal mine costs $1,000,000 and is estimated to hold 50,000 tons of coal. There is no residual value. 3,000 tons are extracted and sold during the first year of operations. Calculate depletion per unit.

• A)$10
• B)$5
• C)$20
• D)$15

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