A coal mine contains approximately 900,000 tons of this material. The mine cost $13' 500, 000 million. The extraction during 2021, the first year of operations, was 120,000 tons. a) How much is the depletion in 2021? b) Suppose that in 2022 100,000 tons were extracted, what would be the net book value? c) Make the table of the depreciation calculation by the method that corresponds and is adequate to solve this exercise. Could you explain step by step and in detail?, please

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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A coal mine contains approximately 900,000 tons of this material. The mine cost $13' 500, 000 million. The extraction during 2021, the first year of operations, was 120,000 tons.

a) How much is the depletion in 2021?

b) Suppose that in 2022 100,000 tons were extracted, what would be the net book value?

c) Make the table of the depreciation calculation by the method that corresponds and is adequate to solve this exercise.

 

Could you explain step by step and in detail?, please

 

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