A Mine Is Purchased for $4,000,000

question 162

Multiple Choice

A mine is purchased for $4,000,000.There will be a salvage value of $300,000 when the land is restored after mining is completed.The mine has an estimated 250,000 tons of coal.During 2012,there were 35,000 tons of coal removed.What is the depletion expense for 2012?

• A) $518,000
• B) $466,550
• C) $560,000
• D) $300,000

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Definitions:

Union Security Clause

A provision in a labor contract that requires employees to join the union within a certain time frame as a condition of employment.

National Industrial Recovery Act

A law enacted in 1933 in the United States to authorize the President to regulate industry in an attempt to raise prices after severe deflation and stimulate economic recovery.

NLRB v. Jones and Laughlin Steel Corporation

A landmark 1937 United States Supreme Court case that upheld the constitutionality of the National Labor Relations Act, affirming the national government's power to regulate labor relations.

Federal Mediation and Conciliation Service

A U.S. government agency that provides mediation and conciliation services to facilitate the resolution of labor disputes between unions and employers.