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Sheridan Corporation acquired a coal mine for $1750000. Intangible development costs totaled $358000. After extraction is completed, Sheridan must restore the property. The estimated fair value of the obligation is $190000, after which the company estimates that it can be sold for $202000. Sheridan estimates that 5000 tons of coal can be extracted. What is the amount of depletion per ton?

Answer rating: 100% (QA)

To calculate the amount of depletion per ton we first need to determine the total depletion cost ... View the full answer