Answer:
the depletion expense per ton is $1.75
Explanation:
<em>Cost for the contract</em>
6,400,000 for the land
<u>1,200,000</u> obligation to restore the land
7,600,000
<em>Salvage value</em>
600,000
<em>Amount subject to depreciation</em>
7,600,000 - 600,000 = 7,000,000
<em>tons of minerals</em>
4,000,000
rate per ton:
depreciable amount / tons
7,000,000/4,000,000 = $1.75
the depletion expense per ton is $1.75
