Answer:
$7,667,100
Explanation:
Step 1 : Determine Depletion Rate
Depletion Rate = Cost ÷ Estimated units
= $8,519,000 ÷ 849,300 tons
= $10.03
Step 2 : Determine the Depletion Cost
Depletion Cost = Depletion Rate x units mined
= $10.03 x 764,370 tons
= $7,667,100
Conclusion :
Parscale's cost depletion for the year is $7,667,100