Question

Depletion Expense

A company purchased a tract of land for its natural resources at a cost of $1,500,000. It expects to mine 2,000,000 tons of ore from this land. The salvage value ofthe land is expected to be $250,000. The depletion expense per ton of ore is:

a. $0.75

b. $0.625

c. $0.875

d. $6.00

e. $8.00

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