For $42,950,000, Wesco Developers purchased land which their experts believe to contain 28.5 million tons of copper ore. It cost $12,443,000 to develop the property, whose residual value is estimated as $5,985,000. Determine the current year depletion expense (in $) if annual production amounted to 4,847,000 tons. Round depletion cost per unit to the nearest cent.

For $42,950,000, Wesco Developers purchased land which their experts believe to contain 28.5 million tons of copper ore. It cost $12,443,000 to develop the property, whose residual value is estimated as $5,985,000. Determine the current year depletion expense (in $) if annual production amounted to 4,847,000 tons. Round depletion cost per unit to the nearest cent.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter7: Fixed Assets, Natural Resources, And Intangible Assets

Section: Chapter Questions

Problem 4SEQ

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