QUESTION 5 A construction store sells a wide variety of cut limestone for residential and commercial building construction. A recent quarry expansion cost $2.9 million and added an estimated 100,000 tons of reserve. Estimate the cost depletion allowance in year 2 using the projections made by the owner. Year 3 14 Volume, 1000 tons 10 15 15 18 Price, $ per ton $ 1.42 million O $0.52 million $ 1.24 million 75 70 70 75 85 $ 1.94 million
QUESTION 5 A construction store sells a wide variety of cut limestone for residential and commercial building construction. A recent quarry expansion cost $2.9 million and added an estimated 100,000 tons of reserve. Estimate the cost depletion allowance in year 2 using the projections made by the owner. Year 3 14 Volume, 1000 tons 10 15 15 18 Price, $ per ton $ 1.42 million O $0.52 million $ 1.24 million 75 70 70 75 85 $ 1.94 million
Chapter1: Making Economics Decisions
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![QUESTION 5
A construction store sells a wide variety of cut limestone for residential and commercial building construction. A
recent quarry expansion cost $2.9 million and added an estimated 100,000 tons of reserve. Estimate the cost
depletion allowance in year 2 using the projections made by the owner.
Year
2
3
14
Volume, 1000 tons
Price, $ per ton
$ 1.42 million
10
15
15
18
75
70
70
75
85
$0.52 million
O $1.24 million
O $1.94 million](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0fc508e6-2809-4bd1-a52b-6ec32f6c7c59%2Fa7779690-60f7-4891-aa0a-9056d548ae57%2Fm45pfl9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 5
A construction store sells a wide variety of cut limestone for residential and commercial building construction. A
recent quarry expansion cost $2.9 million and added an estimated 100,000 tons of reserve. Estimate the cost
depletion allowance in year 2 using the projections made by the owner.
Year
2
3
14
Volume, 1000 tons
Price, $ per ton
$ 1.42 million
10
15
15
18
75
70
70
75
85
$0.52 million
O $1.24 million
O $1.94 million
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