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Acquisition cost 9,000,000.

00
Exploration cost
Development cost 1,000,000.00
Restoration cost (PV) 930,000.00
Residual value -
Total depletion base 10,930,000.00
divided by est. volume 2,500,000.00
Depletion rate 4.37 Answer
x number of tons
Depletion for the year -

Total estimated production/volume 2,500,000.00


divided by annual production 500,000.00
equivalent life in years 5.00

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