In January 2020, Fritz Mining Corporation purchased a mineral mine for $6,300,000 with removable ore estimated by geological surveys at 2,500,000 tons. The property has an estimated value of $600,000 after the ore has been extracted. Fritz incurred $1,725,000 of development costs preparing the property for the extraction of ore. During 2020, 585,000 tons were removed and 525,000 tons were sold. For the year ended December 31, 2020, Fritz should include what amount of depletion in its cost of goods sold?
In January 2020, Fritz Mining Corporation purchased a mineral mine for $6,300,000 with removable ore estimated by geological surveys at 2,500,000 tons. The property has an estimated value of $600,000 after the ore has been extracted. Fritz incurred $1,725,000 of development costs preparing the property for the extraction of ore. During 2020, 585,000 tons were removed and 525,000 tons were sold. For the year ended December 31, 2020, Fritz should include what amount of depletion in its cost of goods sold?
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 29CE
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In January 2020, Fritz Mining Corporation purchased a mineral mine for $6,300,000 with removable ore estimated by geological surveys at 2,500,000 tons. The property has an estimated value of $600,000 after the ore has been extracted. Fritz incurred $1,725,000 of development costs preparing the property for the extraction of ore. During 2020, 585,000 tons were removed and 525,000 tons were sold. For the year ended December 31, 2020, Fritz should include what amount of depletion in its cost of goods sold?
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