Mining Expedition Company purchased a coal mine on January 1, 2010, for

$9,750,000

and expects the mine to produce

3,900,000

pounds of coal over its useful life. In 2010,

1,200,000

pounds of coal were recovered. In 2011,

600,000

pounds of coal were recovered. What is the depletion for each of these years?

Begin by calculating the depletion per unit.

		/.		=	Depletion per unit
		/		=

Complete the following chart.

Year		x		=	Annual depletion
2010		x		=
2011		x		=