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ValentinkaMS [17]
3 years ago
6

A company purchased a tract of land for its natural resources at a cost of $1,920,500. it expects to mine 2,150,000 tons of ore

from this land. the salvage value of the land is expected to be $265,000. the depletion expense per ton of ore is:
Business
1 answer:
dangina [55]3 years ago
8 0

Depletion expense (E) is equal to the Fixed Cost minus the Salvage Value divided by the tons of ore to be mined. The equation would then be: E = ($1,920,500 – $265,000) / 2,150,000. Therefore, E is equal to $0.77/ton of ore.

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