Answered

Discover how IDNLearn.com can help you learn and grow with its extensive Q&A platform. Discover in-depth answers from knowledgeable professionals, providing you with the information you need.

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 joining our conversation. Don't hesitate to return anytime to find answers to your questions. Let's continue sharing knowledge and experiences! Your questions deserve reliable answers. Thanks for visiting IDNLearn.com, and see you again soon for more helpful information.