Mining Co. purchased a coal mine for $800,000 and incurred development costs of $220,000. The property has an estimated value of $120,000 after the coal is extracted. Mining Co. estimates that 10,000 tons of coal will be extracted and that extraction costs will be $500,000. 
What is the depletion rate per ton of coal?

Answer rating: 100% (QA)

To calculate the depletion rate per ton of coal we need to divide the total depletion cost by the e... View the full answer