Question: On March 3 1 , 2 0 2 4 , a company purchased the right to remove gravel from an old rock quarry. The gravel

On March 31,2024, a company purchased the right to remove gravel

On March

31, 2024,

a company purchased the right to remove gravel from an old rock quarry. The gravel is to be sold as roadbed for highway construction. The cost of the quarry rights was $

245, 700,

with estimated salable rock of

27, 000

tons. During

2024,

The company loaded and sold

4, 400

tons of rock and estimated that

22, 600

tons remained on December

31, 2024 .

On January

1, 2025,

the company estimated that

8, 800

tons still remained. During

2025,

the company loaded and sold

13, 200

tons. The company uses the units

-

-

production method.

The company would record depletion in

2024

in the amount of:

Note: Do not round depletion rate per ton.

from an old rock quarry. The gravel is to be sold as

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