Answer:
c. $26,000
Explanation:
The computation of the depletion expense is shown below:
= (Original cost - residual value) ÷ estimated units or tons × number of tons extracted in a given year
= ($1,750,000 - $150,000) ÷ 400,000 tons × 6,500 tons
= $26,000
We simply subtract the residual value from the original cost and then divide it by total estimated tons. After that, multiply it with the extracted units
