Question
Western Carolina Coal Co. expects to produce 125,000 tons of coal annually for 15 years. The deposit cost $2M to acquire; the annual gross revenues
Western Carolina Coal Co. expects to produce 125,000 tons of coal annually for 15 years. The deposit cost $2M to acquire; the annual gross revenues are expected to be $9.50 per ton, and the net revenues are expected to be $4.25 per ton.
a. Compute the annual depletion on a coast basis.
b. compute the annual depletion on a percentage basis.
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Corporate Financial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
12th edition
1305041399, 1285078586, 978-1-133-9524, 9781133952428, 978-1305041394, 9781285078588, 1-133-95241-0, 978-1133952411
