Help Save Exits MC Qu 130 A company purchased A company purc

Help Save &Exits; MC Qu. 130 A company purchased... A company purchased a tract of and for its natural resources at a cost of $1.801 300 it expects to mine 200,000 sons of ore thom this land The savage value of the Jand is espected to be $261,000. The depletion expense per ton of ore is 92 3 6 command option

Solution

Solution :

Depletion expense =( cost - salvage value) ÷ tons

= (1,801,300- 261,000) ÷ 2,110,000

= $0.730