What is the depletion charge for year one

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Reference no: EM131976893

Problem

A silver mine was purchased for one million dollars and is estmated to contain 500,000 lbs of silver. in year 1 500 lbs of silver was removed from the mine and sold for $19 per lb. in year 2, 600 lbs wa wer removed and sold for $12 per pound.

What is the depletion charge for year 1?

What is the depletion charge for year 2?

Reference no: EM131976893

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