National Mining Corp

question 154

Multiple Choice

National Mining Corp. purchased a mine, which holds an estimated 36,000 tons of iron ore, on January 1, 2018, for $526,000. The mine is expected to have zero residual value. The business extracted and sold 7500 tons of ore in 2018 and 15,800 tons of ore in 2019. What is the depletion expense for 2018? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

• A) $230,838
• B) $109,575
• C) $194,838
• D) $416,385