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A Coal Mine Was Purchased for $900 000

Question 47

Multiple Choice

A coal mine was purchased for $900 000. Estimated production is 20 000 000 tons of coal after which the mine will be sold for $50 000. During the current year 5 500 000 tons of coal were produced and sold. Amortisation for the year is:


A) $139 091
B) $212 500
C) $233 750
D) $247 500

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