Engineering, 12.04.2021 06:10 tsumugiisama

For the last 10 years, Am-Mex Coal has used the cost depletion factor of $2,500 per 100 tons to write off the investment of $38 million in its Pennsylvania anthracite coal mine. Depletion thus far totals $24.8 million. A new study to appraise mine reserves indicates that no more than 910,000 tons of salable coal remains. The estimated gross income is expected to be $8.8 million on a production level of 72,000 tons. Determine next year’s depletion amount. The percentage depletion allowance is 10%. (Enter your answer in dollars and not in millions.)The next year's depletion amount is $

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For the last 10 years, Am-Mex Coal has used the cost depletion factor of $2,500 per 100 tons to writ...

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