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a newconnect.mheducation.com ct Search Textbook Solutions Chegg.com Nu 8-10 PM Saved On March 31, 2016, M. Belotti purchased the right to remove gravel from an old rock quarry. The gravel is to be sold as roadbed for highway construction. The cost of the quarry rights was $223600, with estimated salable rock of 26,000 tons. During 2016, Belotti loaded and sold 5,400 tons of rock and estimated that 20,600 tons remained at December 31, 2016. At January 1, 2017, Belotti estimated that 10,800 tons still remained During 2017, Belotti loaded and sold 16.200 tons. 59 Belotti would record depletion in 2016 of (Do not round depletion rate per ton): Multiple Choice $48.400. $34,830. $46.440

Solution

Calculation of Depletion that Belotti would record in 2016 Particulars $ The cost of the quarry rights 223600 Tons of rocks loaded and sold during 2016 5400 Total estimated salable rocks 26000 Depletion in 2016 is (223600*5400/26000) 46440 The right answer is option ( c) $ 46,440