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In March, 202X, Mallory Mines Co. purchased a coal mine for $8,000,000. Removable coal is estimated at 1,500,000 tons. Mallory is required to restore the
In March, 202X, Mallory Mines Co. purchased a coal mine for $8,000,000. Removable coal is estimated at 1,500,000 tons. Mallory is required to restore the land at an estimated cost of $965,000, and the land should have a value of $840,000. The company incurred $2,000,000 of development costs preparing the mine for production. During 202X,360,000 tons were removed and 240,000 tons were sold. How much is the depletion rate per ton? Prepare the journal entry to record depletion for 202X
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