Concept explainers
All-That-Glitters Mining Company paid $49.250.000 for a parcel of land, including the gold mining rights. In addition, the company spent $7.462.500 to prepare the site for mining operations. It is estimated that the residual value of the asset will be $5.300.000. Geologists estimate the site contains a total of 225.000 ounces of gold.
a. What is the average depletion cost per ounce?
Total depletion = 49.250.000 + 7.462.500 - 5.300.000 = $51,412,500
Average depletion cost per ounce =
b. If 16,200 ounces were mined in the first year of operation, what is the amount of the depletion cost?
First-year depletion cost =
Want to see the full answer?
Check out a sample textbook solutionChapter 17 Solutions
Contemporary Mathematics for Business & Consumers
- What is the total effect on the economy of a government tax rebate of $1,000 to each household in order to stimulate the economy if each household will spend 90% of the rebate in goods and services?arrow_forwardYour family has annual loan payments equal to 28 of its annual income. During theyear, the loan payments total $17,920 . What is your family’s annual income?arrow_forwardA tabletop is semicircular when its three congruent drop-leaves are used. By how much has the tables area increased when the drop leaves shaded area increased. Give the answer to the nearest whole percent.arrow_forward
- Elementary Geometry For College Students, 7eGeometryISBN:9781337614085Author:Alexander, Daniel C.; Koeberlein, Geralyn M.Publisher:Cengage,