General Accounting UNESCO Mining Co. acquired mineral rights for$55,500,000. The mineral deposit is estimated at37,000,000 tons. During the current year,6,000,000 tons were mined and sold. Determinethe amount of depletion expense for the currentyear.

Step 1:Calculate the depletion rate per tonStep 2:Calculate the depletion expense for the current…

Answered: UNESCO Mining Co. acquired mineral…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 56P

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UNESCO Mining Co. acquired mineral rights for $55,500,000. The mineral deposit is estimated at 37,000,000 tons. During the current year, 6,000,000 tons were mined and sold. Determine the amount of depletion expense for the current year.