Question

ABC Company acquired mineral rights for $15,000,000. The mineral deposit is estimated at 60,000,000 tons. During the current year 11,500,000 tons were mined and sold for $3,500,000. What is the rate per ton?

Answer 1

$0.25 per ton

Step-by-step explanation:

The computation of the rate per ton is shown below:

= Acquired value of mineral rights ÷ estimated mineral deposit in tons

= $15,000,000 ÷ 60,000,000 tons

= $0.25 per ton

Since the question is taking about the natural resources so we assume that the rate per ton would be depletion rate per ton and according to that, the calculation is shown