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  • Early in 2009 The Atlantic Mining Company Began Operation at

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    Taimur Technologist
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    The Atlantic Mining Company began operations in 2009 at its West Virginia mine, which it had acquired in 2007 for $8.9 million. The mine was estimated to contain 4 million tons of silver worth $1.5 million. The company installed $2.5 million of equipment. In 2009, 550,000 tons of ore were removed, and in 2010, 688,000 tons were removed. The document asks to calculate the depletion and depreciation rates per ton of ore and the depletion and depreciation expenses.

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    Early in 2009 the Atlantic Mining Company Began Operation At

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    The Atlantic Mining Company began operations in 2009 at its West Virginia mine, which it had acquired in 2007 for $8.9 million. The mine was estimated to contain 4 million tons of silver worth $1.5 million. The company installed $2.5 million of equipment. In 2009, 550,000 tons of ore were removed, and in 2010, 688,000 tons were removed. The document asks to calculate the depletion and depreciation rates per ton of ore and the depletion and depreciation expenses.

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    © All Rights Reserved
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    19 views1 page

    Early in 2009 The Atlantic Mining Company Began Operation at

    Uploaded by

    Taimur Technologist
    The Atlantic Mining Company began operations in 2009 at its West Virginia mine, which it had acquired in 2007 for $8.9 million. The mine was estimated to contain 4 million tons of silver worth $1.5 million. The company installed $2.5 million of equipment. In 2009, 550,000 tons of ore were removed, and in 2010, 688,000 tons were removed. The document asks to calculate the depletion and depreciation rates per ton of ore and the depletion and depreciation expenses.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Early in 2009 the Atlantic Mining Company began

    operation at #4848
    Early in 2009, the Atlantic Mining Company began operation at its West Virginia mine. The mine
    had been acquired at a cost of $8,900,000 in 2007, and is expected to contain 4 million tons of
    silver and to have a residual value of $1,500,000 (once the silver is depleted). Before beginning
    mining operations, the company installed equipment at a cost of $2,500,000. This equipment
    will have no economic usefulness once the silver is depleted. Therefore, depreciation of the
    equipment is based upon the estimated number of tons of ore produced each year. Ore
    removed from the West Virginia mine amounted to 550,000 tons in 2009 and 688,000 tons in
    2010.(a) Compute the per ton depletion rate of the mine and the per ton depreciation rate of the
    mining equipment.(b) Determine the depletion expense for the mine and the depreciation
    expense for the mining equipment.View Solution:
    Early in 2009 the Atlantic Mining Company began operation at

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