Luper Company acquired a tract of land which contained iron deposits for $2,500,000. Luper spent $120,000 to
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Luper Company acquired a tract of land which contained iron deposits for $2,500,000. Luper spent $120,000 to access the iron ore. Luper estimates that 2,000,000 tons of ore will be extracted. The estimated value of the land after the ore is extracted is $100,000. During the current year, Luper extracts 150,000 tons of iron ore. Required: Compute the cost of the natural resource and the amount of depletion taken during the year?
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The cost of the natural resource includesall costs necessary to ready the natu...View the full answer
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