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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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