Question
At the beginning of 2020, Marin Company acquired a mine for $1,910,400. Of this amount, $114,000was ascribed to the land value and the remaining portion
At the beginning of 2020, Marin Company acquired a mine for $1,910,400. Of this amount, $114,000was ascribed to the land value and the remaining portion to the minerals in the mine. Surveys conducted by geologists have indicated that approximately11,310,000units of ore appear to be in the mine. Marin incurred $193,800of 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 $45,600. During 2020,2,509,000units of ore were extracted and1,908,000of these units were sold.
Compute The total amount of depletion for 2020
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