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A coal mine cost $1,006,000 and is estimated to hold 60,000 tons of coal. There is no residual value. During the first year of operations, 7,000 tons are extracted and sold. Calculate depletion expense for the first year. (Round any intermediate calculations to the nearest cent.) O $100,600 O $117,390 O $150,900

A coal mine cost $1,006,000 and is estimated to hold 60,000 tons of coal. There is no residual value. During the first year of operations, 7,000 tons are extracted and sold. Calculate depletion expense for the first year. (Round any intermediate calculations to the nearest cent.) O $100,600 O $117,390 O $150,900

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A coal mine cost $1,006,000 and is estimated to hold 60,000 tons of coal. There is no residual value. During the first year of operations, 7,000 tons are extracted and sold. Calculate depletion expense for the first year. (Round any intermediate calculations to the nearest cent.) $100,600 $117,390 $150,900 $201,200
Transcribed Image Text:A coal mine cost $1,006,000 and is estimated to hold 60,000 tons of coal. There is no residual value. During the first year of operations, 7,000 tons are extracted and sold. Calculate depletion expense for the first year. (Round any intermediate calculations to the nearest cent.) $100,600 $117,390 $150,900 $201,200
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