Multiple Choice
A coal company invests €12 million in a mine estimated to have 20 million tons of coal and no residual value. It is expected that the mine will be in operation for 5 years. In the first year, 1,000,000 tons of coal are extracted and sold. What is the depletion expense for the first year?
A) €600,000
B) €240,000
C) €60,000
D) Cannot be determined from the information provided.
Correct Answer:
Verified
Correct Answer:
Verified
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