In March, 2024, a mining company purchased a coal mine for $8,000,000. Removable coal is estimated...

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In March, 2024, a mining company purchased a coal mine for $8,000,000. Removable coal is estimated at 1,500,000 tons. The company is required to restore the land at an estimated cost of $960,000; after which, the land is expected to have a value of $840,000 (salvage value). The company incurred $2,000,000 of development costs preparing the mine for production. If during 2024, 360,000 tons were removed, then what total amount of depletion should the company record for 2024? In March, 2024, a mining company purchased a coal mine for $8,000,000. Removable coal is estimated at 1,500,000 tons. The company is required to restore the land at an estimated cost of $960,000; after which, the land is expected to have a value of $840,000 (salvage value). The company incurred $2,000,000 of development costs preparing the mine for production. If during 2024, 360,000 tons were removed, then what total amount of depletion should the company record for 2024?

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1 Calculate Depletion Cost per Ton Total Cost 8000000 Sal... View the full answer