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Skyline Mine, Inc

Question 1

Multiple Choice

Skyline Mine, Inc., acquired a mineral deposit for $12,000,000 in 2008. Geologists estimate the deposit contains 2,000,000 tons of ore. During 2008 and 2009, Skyline Mine, Inc. removed 610,000 tons and 480,000 tons of ore, respectively. The balance in the Accumulated Depletion account for the mineral deposit on December 31, 2009, will be:


A) unknown; the balance cannot be determined without knowing the residual value of the resource.
B) $5,490,000.
C) $2,880,000.
D) $6,540,000.

Correct Answer:

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