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  1. business
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  3. your company acquired a mineral deposit at a cost

Your Company acquired a mineral deposit at a cost of $5,950,000 on January 1 of...

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Accounting

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Your Company acquired a mineral deposit at a cost of $5,950,000 on January 1 of Year one. It incurred additional costs of $600,000 to access the deposit, which is estimated to contain 2,000,000 tons and is expected to take 5 years to extract. Salvage value will be $50,000. What is the depletion expense for the first year? In the first year, 418,000 tons were mined. $1,243,550. $1,368,950 O $1,950,000. $1,358,500. Question 11 10 pts Your Company purchased equipment on January 1 for $75,000. The machines are estimated to have a 6-year life and a salvage value of $15,000. The company uses the straight-line depreciation method. At the beginning Year 3, Your Company spent $18,000 on a major overhaul and increased the expected life by three years. Salvage value became $5,000. What is the annual amount of depreciation expense for each of the remaining years? Round to match my answer if necessary. O $11,333 O $ 8,286 O $ 9.714 $ 9,286 $12,571

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