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On January 1, 2011, Munoz Co. purchased machinery. The machinery has an estimated useful life of eight years and an estimated salvage value of $2,050.

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On January 1, 2011, Munoz Co. purchased machinery. The machinery has an estimated useful life of eight years and an estimated salvage value of $2,050. The depreciation applicable to this machinery was $36,556 for 2013, computed by the sum-of-the-years'-digits method. The acquisition cost of the machinery was (rounding hint: if you convert a fraction to a decimal, don't round it when going forward to use it in any calculations. For example, if 32/55 = .581818181818181.leave all those decimals in your calculator when going on to do any further calculations.) In January 2015, Fehr Mining Corporation purchased a mineral mine for $6,135,007 with removable ore estimated by geological surveys at 2,588,800 tons. The property has an estimated value of $600,000 after the ore has been extracted. Fehr incurred $1,711,329 of development costs preparing the property for the extraction of ore. During 2015, 340,000 tons were removed and 300,000 tons were sold. For the year ended December 31, 2015, Fehr should include what amount of depletion in its cost of goods sold? (do not round the depletion rate when multiplying it by units removed or sold)

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