On April 17, 2016, the Loadstone Mining Company purchased the rights to a coal m

Question

On April 17, 2016, the Loadstone Mining Company purchased the rights to a coal mine. The purchase price plus additional costs necessary to prepare the mine for extraction of the coal totaled $4,950,000. The company expects to extract 990,000 tons of coal during a four-year period. During 2016, 249,000 tons were extracted and sold immediately.

Calculate depletion for 2016.

Depletion___________

On April 17, 2016, the Loadstone Mining Company purchased the rights to a coal mine. The purchase price plus additional costs necessary to prepare the mine for extraction of the coal totaled $4,950,000. The company expects to extract 990,000 tons of coal during a four-year period. During 2016, 249,000 tons were extracted and sold immediately.

Explanation / Answer

Depletion for 2016 = 4950000/990000*249000= 1245000

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.