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pshichka [43]
3 years ago
13

Coal Miner Co. acquired coal rights for $100,000,000. It is estimated that there are 2,500,000 tons of the resource, and during

the current year 500,000 tons were mined and sold. What is the amount of depletion for the current year?
Business
1 answer:
Stells [14]3 years ago
7 0

Answer:

$20,000,000

Explanation:

Depletion expense

= (cost / total estimated minerals) x minerals extracted

(100,000,000 / 2,500,000) x 500,000

= $20,000,000

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