In 2017, Newshen company paid 1,000,000 to purchase land containing total estimated 160,000 tons of extractable mineral deposits. The estimated value of the property after the mineral has been removed is 200,000. Extraction activities began in 2017, and by the end of the year, 20,000 tons had been recovered and sold. In 2018, geological studies indicated that the total mineral deposits had been underestimated by 25,000 tons. During2018, 30,000 tons were extracted and 28,000 tons were sold. What is the depletion rate per ton in 2018?

In 2017, Newshen company paid 1,000,000 to purchase land containing total estimated 160,000 tons of extractable mineral deposits. The estimated value of the property after the mineral has been removed is 200,000. Extraction activities began in 2017, and by the end of the year, 20,000 tons had been recovered and sold. In 2018, geological studies indicated that the total mineral deposits had been underestimated by 25,000 tons. During2018, 30,000 tons were extracted and 28,000 tons were sold. What is the depletion rate per ton in 2018?

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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