A Company Purchased Mining Property Containing 15,000,000 Tons of Ore

question 46

Essay

A company purchased mining property containing 15,000,000 tons of ore for $4,875,000. In Year 1, it mined 789,000 tons of ore and in Year 2, it mined 1,235,000 tons. Calculate the depletion expense for Year 1 and Year 2.

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