Question
In Year 1, West Virginia Mining Co. purchased a coal mine that contained an estimated 1,200,000 tons of coal, of which 1,000,000 tons can be
In Year 1, West Virginia Mining Co. purchased a coal mine that contained an estimated 1,200,000 tons of coal, of which 1,000,000 tons can be profitably extracted, for a cash price of $58,500,000. The company mined 50,000 tons of coal in Year 1.Show your work!
Required:
a) What is the amount of depletion to be recorded per ton of coal?
b) What is the amount of depletion expense for Year 1?
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Managerial Accounting
Authors: Ray H Garrison, Alan Webb, Theresa Libby
11th Canadian Edition
1259275817, 978-1259275814
