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In March, 2010, Maley Mines Co. purchased a coal mine for $6,000,000. Removable coal is estimated at 1,500,000 tons. Maley is required to restore the
In March, 2010, Maley Mines Co. purchased a coal mine for $6,000,000. Removable coal is estimated at 1,500,000 tons. Maley is required to restore the land at an estimated cost of $720,000, and the land has a salvage value of $630,000. The company incurred $1,500,000 of intangible development costs preparing the mine for production. During 2010, 450,000 tons were removed and 300,000 tons were sold. The total amount of depletion expense that Maley should record for 2010 is
A) | $1,374,000. | |
B) | $1,518,000. | |
C) | $2,061,000. | |
D) | $2,277,000. |
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