Answer:
Depletion= $0.625
Explanation:
Giving the following information:
Purchase land= $1,500,000.
It expects to mine 2,000,000 tons of one from this land.
The residual value of the land is estimated to be $250,000.
To calculate the depletion per ton, we need to use the following formula:
Depletion= [(purchase cost - salvage value)/useful life of production
Depletion= (1,500,000 - 250,000) / 2,000,000
Depletion= $0.625
