Question: At the beginning of Year 1 Ithaca Incorporated purchased land

At the beginning of Year 1, Ithaca Incorporated purchased land for $1,500,000 from which it expects to extract 800,000 tons of minerals. The estimated residual value is $250,000. What is Ithaca Incorporated’s unit depletion rate?
Assume Ithaca Incorporated used 25,000 tons in Year 1. What is Ithaca Incorporated’s total depletion for Year 1 (round to nearest dollar)?

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  • CreatedDecember 09, 2013
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