Question
At the beginning of 2014, Aristotle Company acquired a mine for $970,000. Of this amount, $100,000was ascribed to the land value and the remaining portion
At the beginning of 2014, Aristotle Company acquired a mine for $970,000. Of this amount, $100,000was ascribed to the land value and the remaining portion to the minerals in the mine. Surveys conducted by geologists have indicated that approximately12,000,000units of the ore appear to be in the mine. Aristotle incurred $170,000of development costs associated with this mine prior to any extraction of minerals. It also determined that the fair value of its obligation to prepare the land for an alternative use when all of the mineral has been removed was $40,000. During 2014,2,500,000units of ore were extracted and2,100,000of these units were sold.
The total amount of depletion for 2020?
Amount that is charged as an expense for 2020?
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