In January 2015, Stonewall Company purchased a mine for $4,250,000 with removable ore estimated to...
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Accounting
In January 2015, Stonewall Company purchased a mine for $4,250,000 with removable ore estimated to be 2,000,000 tons. The property has an estimated value of $250,000 after the ore has been extracted. The company incurred $1,000,000 of development costs preparing the mine for production. During 2015, 500,000 tons of ore were removed and sold. What is the amount of depletion for 2015?
A. $1,000,000
B. $1,062,500
C. $1,250,000
D. $1,312,500
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