Question
In January 2018, the ABC Company purchased a mineral mine for $3,400,000 with removable ore estimated at 4,000,000 tons. The property has an estimated value
In January 2018, the ABC Company purchased a mineral mine for $3,400,000 with removable ore estimated at 4,000,000 tons. The property has an estimated value of $200,000 after the ore has been extracted. The company incurred $800,000 of development costs preparing the mine for production. During 2018, 400,000 tons were removed, and 375,000 tons were sold.
What is the amount of depletion expense that ABC Company should record for 2018?
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
13th Edition
8120335643, 136126634, 978-0136126638
