In early 2014, the Aristotle Company acquired a mine for $845,160. Of this amount, $96,400 went to the value of the land and the rest to the minerals of the mine. Studies by geologists have indicated that approximately 11,890,000 units of the mineral appear to be in the mine. Aristotle incurred $163,880 of development costs associated with this mine prior to any mineral extraction. He also determined that the fair value of his obligation to prepare the land for an alternative use when all the ore has been extracted was $38,560. During 2014, 2,570,000 mineral units were extracted and 2,189,000 of these units were sold.

(a) Calculate the total amount of depletion for 2014.

(b) Compute the amount charged as a 2014 expense for the cost of minerals sold during 2014.

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a To calculate the total amount of depletion for 2014 we need to determine the depletion rate per un... View the full answer