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1. A sum of 2,500,000 was spend in purchasing and developing a mine having an estimated reserves of 230,000 tonnes of ore. During the first
1. A sum of 2,500,000 was spend in purchasing and developing a mine having an estimated reserves of 230,000 tonnes of ore. During the first year, 20,000 tonnes of ore were extracted. A re-estimate of the remaining reserve was then revised to 170,000 tonnes. During the second year 18,000 tonnes were extracted. Compute the depletion allowance for the first and second years. (8)
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