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A company extracted 250,000 tons of ore from a deposit of 2,000,000 tons for which it...

A company extracted 250,000 tons of ore from a deposit of 2,000,000 tons for which it paid $3,000,000 for the mineral rights. Mining labor costs amounted to $8,500,000 and other mining costs were $6,500,000. A total of 175,000 tons of ore were sold during the year. The total amount of expense to be recorded from the above data for the year is:

A)$10,762,500

B)$15,262,500

C)$10,875,000

D)$15,375,000

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Answer #1

Depletion expenditure - cost - $ 3000000 Expected useful life = 2000000 tonns - 4.500. 30000 00 2000000 250000 tons were extr

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