In March, 2020, Sunland Company purchased a coal mine for $8110000. Removable coal is estimated at 1500000 tons. Sunland is required to restore the land at an estimated cost of $940000, and the land should have a value of $820000. The company incurred $1970000 of development costs preparing the mine for production. During 2020, 300000 tons were removed and 240000 tons were sold. The total amount of depletion that Sunland should record for 2020 is O $1852000. O $1481600. O $1632000. O $2040000.

In March, 2020, Sunland Company purchased a coal mine for $8110000. Removable coal is estimated at 1500000 tons. Sunland is required to restore the land at an estimated cost of $940000, and the land should have a value of $820000. The company incurred $1970000 of development costs preparing the mine for production. During 2020, 300000 tons were removed and 240000 tons were sold. The total amount of depletion that Sunland should record for 2020 is O $1852000. O $1481600. O $1632000. O $2040000.

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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