a silver mine is expected to yield 4000 tons of silver ore. this year 1000 tons...
a silver mine is expected to yield 4000 tons of silver ore. this year 1000 tons were extracted. Kelly's adjusted basis in the mine is 2000. what is her cost depletion for the year
Homework Answers
Answer:
Depletion Cost per tone = Cost / Expected Extraction over
life
Depletion Cost per tone = $2,000 / 4,000
Depletion Cost per tone = $0.50
Depletion Cost for the Year = Depletion Cost per tone *
Extraction during the year
Depletion Cost for the Year = $0.50 * 1,000
Depletion Cost for the Year = $500
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