Muddy River Mines purchased a vein of mineral ore for $3,270,000. It is estimated that 15,000,000 tons of ore are available to be extracted. The estimated depletion expense for this year's extraction of 1,760,000 tons of ore is: (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.)
A) $440,000.
B) $3,270,000.
C) $1,760,000.
D) $387,200.
D) $387,200.
Explanation: cost/reserve amount = depletion rate, rate × this year's extraction = expense. Ex: $3,270,000 / 15,000,000 = 0.22 × 1,760,000 tons = $387,200
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