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Question - In 2015, Genex Corporation purchased a mine for $75,000. Genex estimated the mine had 50,000 units of extractable ore. In 2015, Genex extracted 6,000 units and sold 5,000 units. In 2016, Genex extracted an additional 8,000 units and sold the remaining 1,000 units from 2015 and 4,000 units from 2016. In 2016, Genex estimated that, including the ore extracted but unsold, there were 75,000 units of ore remaining.
A. Calculate the allowable cost depletion for 2015.
B. Calculate the allowable cost depletion for 2016.
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