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A coal mine expected to contain 6.5 million tons of coal was purchased at a cost of $30 million. One million tons of coal for
A coal mine expected to contain 6.5 million tons of coal was purchased at a cost of $30 million. One million tons of coal for steel making are produced this year. The gross income for this coal is $15,000,000, and operating costs (excluding depletion expenses) are $1,850,000. If you know that coal has a 10% depletion allowance, what will be the depletion allowance?
(a) Cost depletion.The cost depletion for the year is $?
(b) What is the percentage of depletion
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