Question

The Weber Company purchased a mining site for $618,049 on July 1. The company expects to mine ore for the next 10 years and anticipates that a total of 86,116 tons will be recovered. During the first year the company extracted 4,156 tons of ore. The depletion expense is

Answer 1

Explanation:

Total expenses = $618, 049.

Depletion units expected in total = 86,116 tons.

Depletion rate per unit = $618049 ÷ 86116

Depletion expenses for the first year

= $ 618049 ÷ 86116 × 4156

= $ 29,827.34