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Y Company acquired a tract of land containing an extractable natural resource. Geological surveys estimate that the recoverable reserves will be 2,500,000 tons, and that
Y Company acquired a tract of land containing an extractable natural resource. Geological surveys estimate that the recoverable reserves will be 2,500,000 tons, and that the natural resource will have a salvage value of $1,000,000. The cost of natural resource is $8,000,000. What should be the charge to depletion expense per ton of extracted material? a. $3.2 b. $2.8 c. $2.6 d. $3.0
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