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

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Definitions:

Collection Agency

A company hired by lenders to recover funds that are past due or from accounts that are in default.

Court Summons

A legal document issued by a court or administrative body ordering an individual to appear before it at a specified date and time.

Official Court Form

A standardized document issued by the court system or jurisdiction to be used in legal proceedings.

Itinerant Seller

A seller who moves from place to place to sell goods or services, often without a fixed retail location.