Ask Question
6 February, 08:18

Resource Company acquired a tract of land containing an extractable natural resource. Cooper is required by the purchase contract to restore the land to a condition suitable for recreational use after it has extracted the natural resource. Geological surveys estimate that the recoverable reserves will be 4,000,000 tons, and that the land will have a value of $500,000 after restoration. Relevant cost information follows:

Land: $6,400,000

Estimated restoration costs: 1,200,000.

If Galt maintains no inventories of extracted material, what should be the charge to depletion expense per ton of extracted material?

a. $1.60

b. $1.75

c. $2.00

d. $1.90

+5
Answers (1)
  1. 6 February, 08:47
    0
    I think it is B. I'm sorry if I'm wrong.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Resource Company acquired a tract of land containing an extractable natural resource. Cooper is required by the purchase contract to ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers