Land containing a mine having an estimated 1000000 tons of, Financial Accounting

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Land containing a mine having an estimated 1000000 tons of

Land containing a mine having an estimated 1,000,000 tons of economically extractable ore is purchased for USD 375,000. After the ore deposit is removed, the land will be worth USD 75,000. If 100,000 tons of ore are mined and sold during the first year, the depletion cost charged to expense for the year is:

a. USD 300,000.

b. USD 37,500.

c. USD 30,000.

d. USD 375,000.

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Financial Accounting: Land containing a mine having an estimated 1000000 tons of

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Financial Accounting: Land containing a mine having an estimated 1000000 tons of

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