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A coal mine cost​ $1,001,000 and is estimated to hold​ 58,000 tons of coal. There is no residual value. During the first year of​ operations, 6,000 tons are extracted and sold. Calculate depletion expense for the first year.​ (Round any intermediate calculations to the nearest​ cent.) + g

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TomShelby

Answer:

depletion expense 103,560‬

Explanation:

The first step, is to calculate the rate per ton

coal mine  1,001,000

coal reserve 58,000

We divide the total coal reserve for the mine cost.

depletion rate 1.001.000/58.000 = 17,2586 = 17.26

Then we multiply bythe tons extracted for the period

depletion for the first year 6,000 tonds x 17.26 per ton = 103,560‬

This will be the depletion expense for the year.

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