Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. for the last 10 years, am-mex coal has used the co

For the last 10 years, Am-Mex Coal has used the cost depletion factor...

70.2K

Verified Solution

Question

Accounting

For the last 10 years, Am-Mex Coal has used the cost depletion
factor of $2500 per 100 tons to write off the investment of $35 million
in its Pennsylvania anthracite coal mine. Depletion thus far totals $24.8
million. A new study to appraise mine reserves indicates that no more
than 800,000 tons of salable coal remains. If estimated gross income is
expected to be $8.50 million on a production level of 72,000 tons,
determine next years (a) cost, and (b) percentage depletion amounts.
The percentage depletion allowance is 10%.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Normal seeds can be separated from discoloured ones and from foreign objects by means of an...

Physics
Q

Use the following information to answer the next 3 questions. Parents of children with developmental disorders...

Statistics
Q

Smokey and the Bandit produces outdoor activity clothing. The product line consists of pants, jackets, tops,...

Accounting
Q

The figure below from a geologic publication from the early 1800s shows two sequences of...

Biology
Q

According to the Bohr model the energy levels of a hydrogen atom can be found...

Physics
Q

The average staircase has steps with a width that is 6 cm more than the...

Basic Math
Q

months For this data set the minimum is 1 the first quartile is 11 the...

Statistics
Q

Use the following for questions 18 20 The sequence is arithmetic Find the common difference...

Calculus
Q

Can someone please help me have a better understanding on these topics by providing...

Accounting
Q

The Loch Corporation reports the following information for its Eastern Division: Revenue $2,000,000...

Accounting
Q

If beginning and ending work in process inventorles are $5,000 and $15,000, respectively, and cost...

Accounting
Q

Please show math for question 1 Ken Webster manages a $200...

Finance