Question
In January, 2017, Sunland Company purchased a mineral mine for $4900000 with removable ore estimated by geological surveys at 1600000 tons. The property has an
In January, 2017, Sunland Company purchased a mineral mine for $4900000 with removable ore estimated by geological surveys at 1600000 tons. The property has an estimated value of $320000 after the ore has been extracted. The company incurred $1700000 of development costs preparing the mine for production. During 2017, 590000 tons were removed and 550000 tons were sold. What is the amount of depletion that Sunland should expense for 2017?
|
| $2662750 |
|
| $1798750 |
|
| $2086750 |
|
| $2158750 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Auditors Guide To IT Auditing
Authors: Richard E. Cascarino
2nd Edition
1118147618, 978-1118147610
