A company purchased a tract of land for its natural resources at a cost of $1,500,000. It expects to mine 2,000,000 tons of ore from this land. The salvage value of the land is expected to be $250,000. The depletion expense per ton of ore is:

Question

Quizplus · Accepted Answer

Depletion expense per ton of ore = (Cost of land - Salvage value) / Estimated tons of ore= (1,500,000 - 250,000) / 2,000,000= $0.625

A Company Purchased a Tract of Land for Its Natural