Answer:
The depletion expense amounts to $1,358,500
Explanation:
The depletion expense is computed as:
Depletion expense = (Mineral Deposit Cost + additional cost ) / Estimation extraction × Number of ton extracted in 1st year
where
Mineral Deposit Cost is $5,900,000
Additional cost is $600,000
Estimation extraction is $2,000,000
Number of ton extracted in 1st year is $418,000
Putting the values in the above:
= ($5,900,000 + $600,000) / ($2,000,000 ×$418,000)
= $65,00,000 / ($2,000,000 ×$418,000)
= $1,358,500
