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Crane Mining Company purchased land containing an estimated 15 million tons of ore at a cost of $4,080,000. The land without the ore is estimated to be worth $630,000. The company expects to operate the mine for 12 years. Buildings costing $630,000 are erected on the site and are expected to last for 25 years. Equipment costing $420,000 with an estimated life of 15 years is installed. The buildings and the equipment possess no salvage value after the mine is closed. During the first year of operations, the mining company mined and sold 3 million tons of ore. (a) * Your answer is incorrect. Compute the depletion charge per ton. (Round answer to 2 decimal places, e.g. 0.75.) Depletion charge per ton $ $850,000

Crane Mining Company purchased land containing an estimated 15 million tons of ore at a cost of $4,080,000. The land without the ore is estimated to be worth $630,000. The company expects to operate the mine for 12 years. Buildings costing $630,000 are erected on the site and are expected to last for 25 years. Equipment costing $420,000 with an estimated life of 15 years is installed. The buildings and the equipment possess no salvage value after the mine is closed. During the first year of operations, the mining company mined and sold 3 million tons of ore. (a) * Your answer is incorrect. Compute the depletion charge per ton. (Round answer to 2 decimal places, e.g. 0.75.) Depletion charge per ton $ $850,000

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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Cuffert Attemperat Crane Mining Company purchased land containing an estimated 15 million tons of ore at a cost of $4,080,000. The land without the ore is estimated to be worth $630,000. The company expects to operate the mine for 12 years. Buildings costing $630,000 are erected on the site and are expected to last for 25 years. Equipment costing $420,000 with an estimated life of 15 years is installed. The buildings and the equipment possess no salvage value after the mine is closed. During the first year of operations, the mining company mined and sold 3 million tons of ore. (a) * Your answer is incorrect. Compute the depletion charge per ton. (Round answer to 2 decimal places, e.g. 0.75.) Depletion charge per ton $ $850,000 SUPPOR
Transcribed Image Text:Cuffert Attemperat Crane Mining Company purchased land containing an estimated 15 million tons of ore at a cost of $4,080,000. The land without the ore is estimated to be worth $630,000. The company expects to operate the mine for 12 years. Buildings costing $630,000 are erected on the site and are expected to last for 25 years. Equipment costing $420,000 with an estimated life of 15 years is installed. The buildings and the equipment possess no salvage value after the mine is closed. During the first year of operations, the mining company mined and sold 3 million tons of ore. (a) * Your answer is incorrect. Compute the depletion charge per ton. (Round answer to 2 decimal places, e.g. 0.75.) Depletion charge per ton $ $850,000 SUPPOR
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