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Mertz Company purchased land containing an estimated 5 million tons of orefor a cost of 8,800,000. The land without the ore is estimated to be

Mertz Company purchased land containing an estimated 5 million tons of orefor a cost of 8,800,000. The land without the ore is estimated to be worth $500,000. During its first year of operation, the company mined and sold 750,000 tons of ore. 1. Compute the depletion charge per ton. Round the answer to the nearest cent.

2. Compute the depletion expense that Mertz should record for the year.

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