Tutorial Exercise For $42,450,000, Wesco Developers purchased land which their experts believe to contain 28.5 million tons of copper ore. It cost $12,453,000 to develop the property, whose residual value is estimated as $5,985,000. Determine the current year depletion expense if annual production amounted to 4,842,000 tons. Round depletion cost per unit to the nearest cent Step 1 Depletion is the proportional allocation of the cost of natural resources to the units used up, or depleted, per accounting period. Before finding the depletion expense of copper ore for a year, we must calculate the average depletion cost per ton. This average uses the total cost of the natural resource package, the residual or salvage value of the property after resources have been exhausted, and the estimated total number of units of resource available. Land was purchased for $42,450,000, and another $12,453,000 was spent to develop it. The residual value of the land is estimated to be $5,965,000, and it is believed that the land contains 28.5 million tons of copper ore. In standard notation, 28.5 million is written as 28,500,000. Find the average depletion cost per ton of copper ore using the following formula, rounding the result to the nearest cent average depletion cost Purchase price + developing cost-residual value estimated units available 42,450,000 12,453,000-5005000 28,500,000 x