A company purchased mineral assets costing $840,000, with estimated residual value of $30,000, and holding approximately 300,000

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A company purchased mineral assets costing $840,000, with estimated residual value of $30,000, and holding approximately 300,000 tons of ore. During the fi rst year, 48,000 tons are extracted and sold. What is the amount of depletion for the fi rst year?

a. $114,500

b. $129,600

c. $109,400

d. Cannot be determined from the data given

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Financial Accounting International Financial Reporting Standards

ISBN: 9780273777809

1st Global Edition

Authors: Walter T Harrison, Charles Horngren, Bill Thomas, Themin Suwardy

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