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Manson Company incurred costs of $5,720,000 for the acquisition and development of a mineral deposit. The company expects to extract 2,200,000 tons during a four-year period, after which the mineral deposit is expected to have no residual value. The company extracted 880,000 tons during the current year. What was the depletion expense for the current year

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Answer:

Average depletion rate per ton = 5720000/220000

= 2.6

Current year depletion = (880000 * 2.6)

= 2288000

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