Ederly Quarry sells a wide variety of cut limestone for residential and commercial building construction. A recent quarry expansion cost $2.9 million and added an estimated 100,000 tons of reserves. (a) Estimate the cost depletion allowance for the next 5 years, using the projections made by the owner, John Ederly. (b) Will the cost depletion in any of the 5 years be limited by law? Why or why not?
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