| Question | A coal mine purchased for $5 million has enough coal to operate for 10 years. The annual cost is expected to be $200,000 per year. The coal is expected to sell for $150 per ton, with annual production expected to be 10,000 tons. Coal has a depletion percentage rate of 10%. The depletion charge for year 6 according to the percentage depletion method would be closest to: (a) $75,000 (b) $100,000 (c) $125,000 (d) $150,000 |
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| Subject | business-economics |
