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11 August, 05:53

A coal mine cost $1,001,000 and is estimated to hold 58,000 tons of coal. There is no residual value. During the first year of operations, 6,000 tons are extracted and sold. Calculate depletion expense for the first year. (Round any intermediate calculations to the nearest cent.) + g

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  1. 11 August, 06:00
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    depletion expense 103,560‬

    Explanation:

    The first step, is to calculate the rate per ton

    coal mine 1,001,000

    coal reserve 58,000

    We divide the total coal reserve for the mine cost.

    depletion rate 1.001.000/58.000 = 17,2586 = 17.26

    Then we multiply bythe tons extracted for the period

    depletion for the first year 6,000 tonds x 17.26 per ton = 103,560‬

    This will be the depletion expense for the year.
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Home » Business » A coal mine cost $1,001,000 and is estimated to hold 58,000 tons of coal. There is no residual value. During the first year of operations, 6,000 tons are extracted and sold. Calculate depletion expense for the first year.
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