In January, 2023, Demba Corporation purchased a mineral mine for $3,400,000 with removable ore estimated by geological surveys at 2,000,000 tons. The property has an estimated value of $200,000 after the ore has been extracted. The company incurred $1,000,000 of development costs preparing the mine for production. During 2023, 500,000 tons were removed and 400,000 tons were sold. What is the amount of depletion that Demba should expense for 2023
In January, 2023, Demba Corporation purchased a mineral mine for $3,400,000 with removable ore estimated by geological surveys at 2,000,000 tons. The property has an estimated value of $200,000 after the ore has been extracted. The company incurred $1,000,000 of development costs preparing the mine for production. During 2023, 500,000 tons were removed and 400,000 tons were sold. What is the amount of depletion that Demba should expense for 2023
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In January, 2023, Demba Corporation purchased a mineral mine for $3,400,000 with removable ore estimated by geological surveys at 2,000,000 tons. The property has an estimated value of $200,000 after the ore has been extracted. The company incurred $1,000,000 of development costs preparing the mine for production. During 2023, 500,000 tons were removed and 400,000 tons were sold.
What is the amount of depletion that Demba should expense for 2023
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