C C Coal Company purchased the coal rights in an area for $4,050,000.They estimated that the area contained 9,000,000 tons of coal.The first year of operations in the area yielded 110,000 tons of coal.What is the depletion cost per ton of coal? What is the depletion expense for this first year?

Question

Quizplus · Accepted Answer

The Answer of C C Coal Company purchased the coal rights in an area for $4,050,000.They estimated that the area contained 9,000,000 tons of coal.The first year of operations in the area yielded 110,000 tons of coal.What is the depletion cost per ton of coal? What is the depletion expense for this first year?

C C Coal Company Purchased the Coal Rights in an Area