Perez Company acquires an ore mine at a cost of $2,660,000. It
incurs additional costs of $744,800 to access the mine, which is
estimated to hold 1,900,000 tons of ore. 225,000 tons of ore are
mined and sold the first year. The estimated value of the land
after the ore is removed is $380,000. Calculate the depletion
expense from the information given. (Round "Depletion per
unit" to 3 decimal places.)
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Cost |
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Salvage |
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Amount
subject to depletion |
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Total
units of capacity |
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Depletion
per unit |
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Units
extracted and sold in period |
|
Depletion expense |
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