Spring Creek Mines purchased a vein of mineral ore for $3,250,000.It is estimated that 15,000,000 tons of ore are available to be extracted.The estimated depletion expense for this year's extraction of 1,760,000 tons of ore (rounded to the nearest dollar)is:
A)$428,267.
B)$400,000.
C)$334,400.
D)$381,333.

Question

Quizplus · Accepted Answer

The depletion expense is calculated by dividing the purchase cost by the total estimated tons and then multiplying by the extracted tons: ($3,250,000 / 15,000,000) * 1,760,000 = $381,333.33, rounded to $381,333.

Spring Creek Mines Purchased a Vein of Mineral Ore for $3,250,000.It