Question

A Central Appalachia 12,500 Btu, 1.2 SO2 coal has an average price of $60 per ton....

A Central Appalachia 12,500 Btu, 1.2 SO2 coal has an average price of $60 per ton. A mine having 7 million tons of coal has a first cost of $42 million. The cost of mining is $45 per ton. If, during the first 3 years of operation, the mine yields 300,000, 600,000, and 500,000 tons, respectively, determine the depletion allowance using the better method of depletion for each year.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
he coal mining industry has been hard-hit by environmental regulations. Recently, however, a combination of increased...
he coal mining industry has been hard-hit by environmental regulations. Recently, however, a combination of increased demand for coal and new pollution reduction technologies has led to an improved market demand for coal. WHC has just been approached by Mid-Cen Electric Company with a request to supply coal for its electric generators for the next eight years. WHC does not have enough excess capacity at its existing mines to guarantee the contract. The company is considering opening a strip mine...
A Pennsylvania coal mining operation has installed an in-shaft monitoring system for oxygen tank and gear...
A Pennsylvania coal mining operation has installed an in-shaft monitoring system for oxygen tank and gear readiness for emergencies. Based on maintenance patterns for previous systems, the costs increase for a time period, and then they level off. Maintenance costs are expected to be $350,000 in year 1, $385,000 in year 2, $ 423,500 in year 3 and amounts increasing by 10% per year through year 6 and remain constant thereafter for the expected 10 year life of the system....
B. A regional electric utility currently relies on natural gas for power generation. It has 200...
B. A regional electric utility currently relies on natural gas for power generation. It has 200 Mw of natural gas capacity that is running on an average of 30 percent efficiency. It is studying options for supplying additional power to its customers. It has all of the following options: Coal:   A 50 megawatt (Mw) coal plant with a capital cost of $50 million and operating costs of $5 million per year plus the cost of coal. The coal plant would...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT