At the beginning of the current year, Nili company purchased a coal mine for 30,000,000. Removable coal is estimated at 1,500,000 tons. The entity is required to restore the land at an estimated cost of 3,600,000. The land is estimated to have a value of 3,150,000 after restoration. The entity incurred 7,500,000 of development cost preparing the mine for production. During the current year, 450,000 tons were removed and 300,000 tons were sold. What total amount of depletion should be recorded for the current year?

At the beginning of the current year, Nili company purchased a coal mine for 30,000,000. Removable coal is estimated at 1,500,000 tons. The entity is required to restore the land at an estimated cost of 3,600,000. The land is estimated to have a value of 3,150,000 after restoration. The entity incurred 7,500,000 of development cost preparing the mine for production. During the current year, 450,000 tons were removed and 300,000 tons were sold. What total amount of depletion should be recorded for the current year?

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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