In 2016,West Virginia Mining Co.purchased a coal mine that contained an estimated 1,200,000 tons of coal,of which 1,000,000 tons can be profitably extracted,for a cash price of $58,500,000.The company mined 50,000 tons of coal in 2016.
Required: a)What is the amount of depletion to be recorded per ton of coal?
b)What is the amount of depletion expense for 2016?

Question

Quizplus · Accepted Answer

The Answer of In 2016,West Virginia Mining Co.purchased a coal mine that contained an estimated 1,200,000 tons of coal,of which 1,000,000 tons can be profitably extracted,for a cash price of $58,500,000.The company mined 50,000 tons of coal in 2016.
Required: a)What is the amount of depletion to be recorded per ton of coal?
b)What is the amount of depletion expense for 2016?