Question
Interior Resources purchased land for $14,072,000, which their experts believe to contain 27.5 million tons of tar sands. It costs $3,143,000 to develop the property,
Interior Resources purchased land for $14,072,000, which their experts believe to contain 27.5 million tons of tar sands. It costs $3,143,000 to develop the property, whose residual value is estimated at $986,000.
Determine the current year depletion expense if annual production amounted to 5,145,000 tons.
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