A company purchased mining property containing 7,350,000 tons of ore for $1,837,500. In Year 1, it mined and sold 857,000 tons of ore and in Year 2, it mined and sold 943,000 tons of ore. Calculate the depletion expense for Year 1 and Year 2. What was the carrying amount of the property at the end of Year 2?

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The Answer of A company purchased mining property containing 7,350,000 tons of ore for $1,837,500. In Year 1, it mined and sold 857,000 tons of ore and in Year 2, it mined and sold 943,000 tons of ore. Calculate the depletion expense for Year 1 and Year 2. What was the carrying amount of the property at the end of Year 2?

A Company Purchased Mining Property Containing 7,350,000 Tons of Ore