Answer:
Depletion expense per ton = $3.68
Explanation:
Calculation of Total Cost
Total cost = Land + Estimated restoration costs
Total cost = $9,000,000 + 1,500,000
Total cost = $10,500,000
The depletion expenses of Crowder Company is as calculated below:
Depletion expense per ton = (Asset cost - Residual value) / No of unit depletion
Depletion expense per ton = $10,500,000 - $1,080,000 / 2,560,000 tons
Depletion expense per ton = $9,420,000 / 2,560,000 tons
Depletion expense per ton = $3.68
