Asked by Austin Collins on Jul 30, 2024
Verified
A company purchased mining property for $1,560,000. The property was estimated to contain 13,000,000 tons of ore. In the current year, the company removed and sold 247,000 tons of ore. Calculate the depletion expense for the current year.
Depletion Expense
An accounting method used to allocate the cost of extracting natural resources over the period their benefits are received.
- Acquire knowledge on the concept and computation of depletion pertaining to natural resources.
Verified Answer
ZK
Zybrea KnightAug 04, 2024
Final Answer :
$1,560,000/13,000,000 tons = $0.12/ton
247,000 tons $0.12 = $29,640
247,000 tons $0.12 = $29,640
Learning Objectives
- Acquire knowledge on the concept and computation of depletion pertaining to natural resources.
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