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In 20x1, INNOCUOUS HARMLESS Co. acquired land to be used to mine coal. Total costs of acquisition, exploration, and intangible development amounted to 40,000,000. It
In 20x1, INNOCUOUS HARMLESS Co. acquired land to be used to mine coal. Total costs of acquisition, exploration, and intangible development amounted to 40,000,000. It was estimated that total recoverable reserves is 50,000,000 units. Total units extracted from 20x1 through 20x4 totaled 30,000,000 units. In 20x5, after extracting 5,000,000 units, it was
estimated that the remaining recoverable reserves is 20,000,000 units. How much is the depletion charge in 20x5?
a. 3,200,000 b. 3,333,333c. 3,266,667d. 3,400,000
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