The weber company purchased a mining site for $1,600,000 on july 1. the company expects to mine ore for the next 10 years and anticipates that a total of 400,000 tons will be recovered. during the first year, the company extracted 6,500 tons of ore. the depletion expense is

$26,000

Explanation:

To calculate the total depletion expense for a year, we must first calculate the depletion expense for every ton of ore extracted:

depletion expense per ton = cost of the mine / total tons extracted

depletion expense per ton = $1,600,000 / $400,000 = $4 per ton extracted

If during the first year Weber Company extracted 6,500 tons, their depletion expense for the year = 6,500 tons x $4 per ton = $26,000

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