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A coal company invests $12 million in a mine estimated to have 15 million tons of coal and $2,000,000 salvage value. It is expected that
A coal company invests $12 million in a mine estimated to have 15 million tons of coal and $2,000,000 salvage value. It is expected that the mine will be in operation for 5 years. In the second year,500,000 tons of coal are extracted and sold. What is the depletion expense for the second year?
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