Caan purchased the Stokes Mine for $600 million. The mine was estimated to contain 6 million tons of anthracite coal and to have a residual value of $120 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. Compute the following:
$\begin{array}{|l|l}
\hline\text { (a) Depletion recognized in the first year. } &\$\underline{\quad\quad\quad \quad} \
\hline\text { (b) Amount of the first year depletion recognized as } \
\hline\text { cost of goods sold. }&\$\underline{\quad\quad\quad \quad} \
\hline
\end{array}$

Question

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The Answer of Caan purchased the Stokes Mine for $600 million. The mine was estimated to contain 6 million tons of anthracite coal and to have a residual value of $120 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. Compute the following:
$\begin{array}{|l|l}
\hline\text { (a) Depletion recognized in the first year. } &\$\underline{\quad\quad\quad \quad} \
\hline\text { (b) Amount of the first year depletion recognized as } \
\hline\text { cost of goods sold. }&\$\underline{\quad\quad\quad \quad} \
\hline
\end{array}$

Caan Purchased the Stokes Mine for $600 Million