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Balcom Corporation acquires a coal mine at a cost of $1,500,000. Intangible development costs total $360,000. After extraction has occurred, Balcom must restore the property (estimated fair value of the obligation is $180,000), after which it can be sold for $510,000. Balcom estimates that 5,000 tons of coal can be extracted. What is the amount of depletion per ton?
Question 17 options:
A.
$306
B.
$510
C.
$300
D.
$372
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Balcom Corporation acquires a coal mine at a cost of $1,500,000. Intangible development costs total...
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