Multiple Choice
The Drilling Company purchased a mining site for $500,000 on July 1,2010.The company expects to mine ore for the next 10 years and anticipates that a total of 100,000 tons will be recovered.The estimated residual value of the property is $80,000.During 2010 the company extracted 6,500 tons of ore.The depletion expense for 2010 is
A) $37,700.
B) $42,000.
C) $32,500.
D) $27,300.
Correct Answer:
Verified
Correct Answer:
Verified
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