2.34 A coal mine purchased 3 years ago for $8 million was estimated to contain 4,000,000 tons of coal. During the past 3 years the tonnage of coal removed was 21,000, 18,000, and 20,000 tons, respectively. The gross income obtained in these 3 years was $257,000 for the first year, $320,000 for the second year, and $340,000 for the third year. Determine (a) the cost depletion allowance for year 2, and (b) the percentage of the purchase price removed from the books through year 3
2.34 A coal mine purchased 3 years ago for $8 million was estimated to contain 4,000,000 tons of coal. During the past 3 years the tonnage of coal removed was 21,000, 18,000, and 20,000 tons, respectively. The gross income obtained in these 3 years was $257,000 for the first year, $320,000 for the second year, and $340,000 for the third year. Determine (a) the cost depletion allowance for year 2, and (b) the percentage of the purchase price removed from the books through year 3
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Transcribed Image Text:2.34 A coal mine purchased 3 years ago for $8 million was estimated to contain 4,000,000 tons
of coal. During the past 3 years the tonnage of coal removed was 21,000, 18,000, and 20,000
tons, respectively. The gross income obtained in these 3 years was $257,000 for the first year, $320,000 for the second year,
and $340,000 for the third year. Determine (a) the cost depletion allowance for year 2, and
(b) the percentage of the purchase price removed from the books through year 3
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