On January 15, 2020, Vern purchased the rights to a mining stake for $3,500,000. At that time, recoverable units were estimated at 500,000. During the year, 40,000 units were released and 25,000 units were sold for $800,000. Vern spent $500,000 during 2020. The percent exhaustion rate is 22%.

 Determine Vern's consumption cut for 2020.

Answer rating: 100% (QA)

To calculate Verns consumption cut for 2020 we need to first calculate the depletion expen... View the full answer