A company purchased a tract of land for its natural resources at a cost of $1,65

Question

A company purchased a tract of land for its natural resources at a cost of $1,656,800. It expects to mine 2,060,000 tons of ore from this land. The salvage value of the land is expected to be $256,000. The depletion expense per ton of ore is:

$6.472.

$0.680.

$0.929.

$8.047.

$0.804.

A company purchased a tract of land for its natural resources at a cost of $1,656,800. It expects to mine 2,060,000 tons of ore from this land. The salvage value of the land is expected to be $256,000. The depletion expense per ton of ore is:

Explanation / Answer

cost of purchase 1,656,800 salvage value 256,000 net cost 1,400,800 expects to mine 2,060,000 depletion expense per ton of ore 0.680

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