Question
On March 31, 2021, Raj, Inc. purchased the right to remove gravel from an old rock quarry. The gravel is to be sold as roadbed
On March 31, 2021, Raj, Inc. purchased the right to remove gravel from an old rock quarry. The gravel is to be sold as roadbed for highway construction. The cost of the quarry rights was $224,000, with estimated salable rock of 28,000 tons. During 2021, Raj loaded and sold 5,800 tons of rock and estimated that 22,200 tons remained at December 31, 2021. At January 1, 2022, Raj estimated that 11,600 tons still remained. During 2022, Belotti loaded and sold 17,400 tons. Raj uses the units-of-production method. Raj would record depletion in 2021 of:
Multiple Choice
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$58,523.
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$34,800.
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$46,400.
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$45,315.
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