Cameron Company purchased a mine on January 1,2018,for $533,000,which is estimated to contain 30,000 tons of iron ore.There is no residual value.The business extracted and sold 13,500 tons of ore in 2018 and 13,800 tons of ore in 2019.What is the depletion expense for 2019?(Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar.)

Question

Quizplus · Accepted Answer

Depletion per unit = (Cost - Residual value) / Estimated total units
Depletion per unit = ($533,000 - $0) / 30,000 tons = $17.77 per ton
Depletion expense = Depletion per unit × Number of units extracted
Depletion expense for year 2019 = $17.77 × 13,800 tons = $245,226

Cameron Company Purchased a Mine on January 1,2018,for $533,000,which Is