Answered

Westonci.ca is the best place to get answers to your questions, provided by a community of experienced and knowledgeable experts. Get immediate and reliable answers to your questions from a community of experienced professionals on our platform. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

on march 25, parscale company purchases the rights to a mineral interest for $9,756,500. at that time, the remaining recoverable units in the mineral interest are estimated to be 693,500 tons. if required, round any division to two decimal places and use in subsequent computations. round your final answer to the nearest dollar. if 624,150 tons are mined and 104,025 tons are sold this year, calculate parscale's cost depletion for the year.

Sagot :

The parscale's cost depletion for the year is $8,780,850.

Given data:

Cost = $9,756,500

Estimated units = 693,500

Units mined = 624,150

Initially, calculated about Depletion Rate use this formula:

Depletion Rate = Cost : Estimated units

Depletion Rate = $9,756,500 : 693,500

Depletion Rate = $14.07

Then, calculated about Depletion Cost  with this formula:            

Depletion Cost  = Depletion Rate x units mined

Depletion Cost = $14.07 x 624,150

Depletion Cost = 8,780,850

So, the result of depletion cost is $8,780,850.

You can learn more about the depletion cost at https://brainly.com/question/22426722

#SPJ4

                   

Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.