In 2014, Albert Mining Co. purchased a coal mine that contained an estimated 1,000,000 tons of coal for a cash price of $7,500,000. The company mined 250,000 tons of coal in 2014.
Required:
a) What is the depletion charge per ton of coal?
b) What is the amount of depletion expense for 2014?

Question

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The Answer of In 2014, Albert Mining Co. purchased a coal mine that contained an estimated 1,000,000 tons of coal for a cash price of $7,500,000. The company mined 250,000 tons of coal in 2014.
Required:
a) What is the depletion charge per ton of coal?
b) What is the amount of depletion expense for 2014?