During 20x3, Culverson Company purchased the rights to extract coal from an old coal mine. The cost of the coal rights was $161700, with estimated 21,000 tons of sellable coal. During 20x3, Culverson extracted and sold 4,200 tons of coal. How much depletion expense would Culverson record in 20x3? (Do not round depletion rate per ton) Multiple Choice O O $32,340 $32.470 $40,425 $24,255

During 20x3, Culverson Company purchased the rights to extract coal from an old coal mine. The cost of the coal rights was $161700, with estimated 21,000 tons of sellable coal. During 20x3, Culverson extracted and sold 4,200 tons of coal. How much depletion expense would Culverson record in 20x3? (Do not round depletion rate per ton) Multiple Choice O O $32,340 $32.470 $40,425 $24,255

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter7: Fixed Assets, Natural Resources, And Intangible Assets

Section: Chapter Questions

Problem 4SEQ

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Monty Corp. purchased for $5,977,200 a mine that is estimated to have 49,810,000 tons of ore and no salvage value. In the first year, 12,090,000 tons of ore are extracted. (a1) × Your answer is incorrect. Calculate depletion cost per unit. (Round answer to 2 decimal places, e.g. 0.50.) Depletion cost per unit $ eTextbook and Media 0.22 per ton
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