Question
In January of 2025, Waterway Corporation purchased a mineral mine for $5300000 with removable ore estimated by geological surveys at 1800000 tons. The property has
In January of 2025, Waterway Corporation purchased a mineral mine for $5300000 with removable ore estimated by geological surveys at 1800000 tons. The property has an estimated value of $320000 after the ore has been extracted. The company incurred $1400000 of development costs preparing the mine for production. In 2025, 580000 tons were removed, and 450000 tons were sold.
What amount of depletion should Waterway expense for 2025?
- $1595000
- $2220000
- $1180000
- $1245000
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Financial Accounting
Authors: Carl S. Warren, Jim Reeve, Jonathan Duchac
14th edition
1305088433, 978-1305088436
