Calculate the cost depletion


Response to the following problem:

On March 25, 2015, Parscale Company purchases the rights to a mineral inter- est for $8 million. At that time, the remaining recoverable units in the mineral interest are estimated to be 500,000 tons. If 80,000 tons are mined and 75,000 tons are sold this year, calculate Parscale's cost depletion for 2015.

 

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Cost Accounting: Calculate the cost depletion
Reference No:- TGS02100045

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