A company purchased a mineral deposit for $800,000 It expects this property to produce 120,000 tons of minerals and to have a salvage value of $50,000 In the current year, the company mined and sold 9,000 tons of minerals Its depletion expense for the current period equals ...

Total cost 800000 Less salvage value 50000 Actua ...

A company purchased a mineral deposit for $800,000. It expects this property to produce 120,000 tons of

Question:

A company purchased a mineral deposit for $800,000. It expects this property to produce 120,000 tons of minerals and to have a of $50,000. In the current year, the company mined and sold 9,000 tons of minerals. Its depletion expense for the current period equals:
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...