Calculate the total depletion and first-year depletion


A local coal mine is purchased for $380,000 on the basis of its estimated reserve of 200,000 tons of coal. In the first year of operation, the mine produced one-fourth of its reserve. Calculate the total depletion and first-year depletion deduction given that the land can be salvaged for $10,000.

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Finance Basics: Calculate the total depletion and first-year depletion
Reference No:- TGS01690128

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