Week $1-$ Homework: Chapter $10$

Question $2$ of $10$

$\frac{0}{4\mathrm{.}5}$vdots

Crane Mining Company purchased land containing an estimated $15$ million tons of ore at a cost of $$4,080,000.$ The land without the ore is estimated to be worth $$630,000.$ The company expects to operate the mine for $12$ years. Buildings costing $$630,000$ are erected on the site and are expected to last for $25$ years. Equipment costing $$420,000$ with an estimated life of $15$ years is installed. The buildings and the equipment possess no salvage value after the mine is closed. During the first year of operations, the mining company mined and sold $3$ million tons of ore.

$($a$)$

X Your answer is incorrect.

Compute the depletion charge per ton. $($Round answer to $2$ decimal places, e$.$g$.0\mathrm{.}75.)$

Depletion charge per ton

$

$$850,000$