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Pittsburg Resources acquired a coalmine 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. Pittsburg Resources would recognize ________.

1 Answer

2 votes

Answer:

Depletion expense of $1,250,000.

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User Kulikov
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