## (Solved) Western Carolina Coal Co. expects to produce 125,000 tons of coal annually for 15 years. The deposit

Western Carolina Coal Co. expects to produce 125,000 tons of coal annually for 15 years. The deposit cost \$3M to acquire; the annual gross revenues are expected to be \$9.50 per ton, and the net revenues are expected to be \$4.25 per ton. a) Compute the annual depletion on a cost basis. b) Compute the annual depletion on a percentage basis. Show work! Answers: a) \$200,000 b) \$118,750

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This question was answered on: Oct 15, 2019

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