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A mineral mining company expects to produce 6 0 , 0 0 0 tons of minerals annually for 5 yrs . The deposit cost $

A mineral mining company expects to produce 60,000 tons of minerals annually for 5 yrs. The deposit cost $150,000 to acquire. Annual gross revenues are expected to be $9/ton. Net revenues are projected to be $4/ton.
a. Compute annual depletion on a cost basis
b. Compute annual depletion on a percentage basis

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