Answer:
c. $60,000,000, 10,750 tons, and 80,000 tons.
Step-by-step explanation:
* Requirement is inconsistent with the option given.
Depletion is an estimated cost of a natural resource that is extracted. This resource is expensed as the extraction is made.
As per given data
Value of Rights = $60,000,000
Estimated resources = 80,000 tons
Resources extracted in the period = 10,750 tons
Depletion expense is based on ratio of the amount of extraction in period to the total expected resource.
Depletion Expenses = $60,000,000 x 10,750 tons / 80,000 tons = $8,062,500
Similar and correct question and answer is given according to this
Shale Miner Co. acquired mineral rights for $60,000,000. It is estimated that there are 80,000 total tons of the resource, and during the current year 10,750 tons were mined and sold. What information is needed to calculate the rate of depletion?
a.$60,000,000 and 10,750 tons
b.$500 per ton
c.$60,000,000, 10,750 tons, and 80,000 tons
d.$60,000,000 and 80,000 tons