Gonzales Company has acquired the rights to a developed coal mine at a cost of...
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Gonzales Company has acquired the rights to a developed coal mine at a cost of $1,380,000. Gonrales Company estimates that when the company is finished mining the coal, it will be able to sell the land for $182,000. Geological experts estimate a total of 119,800 tons of coal is in the mine. During the first year, 30,000 tons of coal is brought out of the mine, and 23,100 tons of coal is sold. Required: Compute the amount of depletion expense for the current year
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