Granite Quarry Inc. purchased a quarry for $2,400,000. The quarry is estimated to contain 3,200,000 tons of granite. After the granite is fully extracted, the land is expected to be worth $400,000. During 2024, Granite Quarry extracted and sold 180,000 tons of granite. What is the amount of depletion that should be recorded?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 4EB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...
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Granite Quarry Inc. purchased a quarry for $2,400,000. The quarry is
estimated to contain 3,200,000 tons of granite. After the granite is
fully extracted, the land is expected to be worth $400,000. During
2024, Granite Quarry extracted and sold 180,000 tons of granite.
What is the amount of depletion that should be recorded?
Transcribed Image Text:Granite Quarry Inc. purchased a quarry for $2,400,000. The quarry is estimated to contain 3,200,000 tons of granite. After the granite is fully extracted, the land is expected to be worth $400,000. During 2024, Granite Quarry extracted and sold 180,000 tons of granite. What is the amount of depletion that should be recorded?
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ISBN:
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