In year 1, West Virginia Mining Company purchased a coal mine that contained an estimated 1,240,000 tons of coal, of which 1,000,000 tons can be profitably extracted, for a cash price of $60,500,000. The company mined 52.000 tons of coal in Year 1 .

 Required: 

a) What is the amount of depletion to be recorded per ton of coal?

 b) What is the amount of depletion expense for Year 1 ?

Answer rating: 100% (QA)

To calculate the depletion per ton of coal Depletion ... View the full answer