Weber Company Purchased a Mining Site for $1,750,000 on July

question 8

Multiple Choice

Weber Company purchased a mining site for $1,750,000 on July 1. The company expects to mine ore for the next 10 years and anticipates that a total of 400,000 tons will be recovered. The estimated residual value of the property is $150,000. During the first year, the company extracted 6,500 tons of ore. The depletion expense is

• A) $17,500
• B) $16,000
• C) $26,000
• D) $15,000