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On January 1, 2019 Dig Diggy purchased a coal mine for $10,000,000 with removable coal estimated at 4million tons. Dig Diggy believes it will be
On January 1, 2019 Dig Diggy purchased a coal mine for $10,000,000 with removable coal estimated at 4million tons. Dig Diggy believes it will be able to sell the property afterwards for 10% of its cost at the end of its life. During 2019, Dig Diggy removed and sold 100,000 tons of coal. In its 2019 income statement, what amount should be reported as depletion?
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