Caan purchased the Stokes Mine for $60 million. The mine was estimated to contain 6 million tons of anthracite coal and to have a residual value of $12 million. During the first year of mining operations of the Stokes Mine, 800,000 tons of anthracite were mined of which 600,000 tons was sold.
$\begin{array}{|l|l|}
\hline \text { Compute the following: }& \
\hline \text { (a) Depletion recognized in the first year. } &\$\underline{\quad\quad}\
\hline \text { (b) Amount of the first year depletion recognized as } \
\hline \text { cost of goods sold. }&\$\underline{\quad\quad}\
\hline\
\hline
\end{array}$

Question

Caan purchased the Stokes Mine for $60 million. The mine was estimated to contain 6 million tons of anthracite coal and to have a residual value of $12 million. During the first year of mining operations of the Stokes Mine, 800,000 tons of anthracite were mined of which 600,000 tons was sold.
 $\begin{array}{|l|l|}
\hline \text { Compute the following: }& \
 \hline \text { (a) Depletion recognized in the first year. } &\$\underline{\quad\quad}\
\hline \text { (b) Amount of the first year depletion recognized as } \
\hline \text { cost of goods sold. }&\$\underline{\quad\quad}\
\hline\
\hline
\end{array}$

Quizplus · Accepted Answer

The Answer of Caan purchased the Stokes Mine for $60 million. The mine was estimated to contain 6 million tons of anthracite coal and to have a residual value of $12 million. During the first year of mining operations of the Stokes Mine, 800,000 tons of anthracite were mined of which 600,000 tons was sold.
 $\begin{array}{|l|l|}
\hline \text { Compute the following: }& \
 \hline \text { (a) Depletion recognized in the first year. } &\$\underline{\quad\quad}\
\hline \text { (b) Amount of the first year depletion recognized as } \
\hline \text { cost of goods sold. }&\$\underline{\quad\quad}\
\hline\
\hline
\end{array}$

Caan Purchased the Stokes Mine for $60 Million