A coal mine cost $1,001,000 and is estimated to hold 58,000 tons of coal. There is no residual value. During the first year of operations, 6000 tons are extracted and sold. Calculate depletion expense for the first year. (Round any intermediate calculations to the nearest cent.)
A) $100,100
B) $150,150
C) $200,200
D) $103,560
D) $103,560
Explanation: Depletion per unit = (Cost - Residual value) / Estimated total units
Depletion per unit = ($1,001,000 - 0) / 58,000 tons = $17.26 per ton
Depletion expense = Depletion per unit × Number of units extracted
Depletion expense = $17.26 × 6000 tons = $103,560
You might also like to view...
Cash flows from investing activities, as part of the statement of cash flows, would include any receipts from theissuance of bonds payable
a. True b. False Indicate whether the statement is true or false
________ is a simple, statistically based method of analyzing a subset of transactions from a larger pool
a. Structured sampling b. Probability sampling c. Cluster sampling d. Discovery sampling
How did the use of injunctions affect unionization efforts in the late 1800s and early 1900s?
What will be an ideal response?
Which of the following is not a proposal to replace exclusive representation and majority support?
A. Prevent workers from multiple employers from negotiating local standards for wages B. Give explicit legal protection for nonmajority unions C. Give explicit legal protection for works councils D. Give codetermination and consultation rights