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Business, 12.03.2020 20:11 mrskhg3395
Pittsburg Resources acquired a coal mine for $6,000,000. The company’s survey estimates that 120,000 tons of coal can be extracted from the mine. In the first year of operations, 25,000 tons of coal was extracted, and the coal is considered sold immediately upon extraction.
Required:
1. Calculate depletion for the first year.
2. Discuss the accounting treatment of the depletion calculated in requirement 1.
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Pittsburg Resources acquired a coal mine for $6,000,000. The company’s survey estimates that 120,000...
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