Reference no: EM132158332

Question - Striker Corporation bought a mine in year 1 for $100,000 and estimated that there were 100,000 tons of extractable ore. In year 1, it mined 10,000 tons and sold 8,000 tons. In year 2, it mined 9,000 and sold the remaining 2,000 tons from year 1 and 6,000 of the ore mined in year 2. At the end of year 2, Striker Corporation estimated that, including the ore extracted but unsold, there were 150,000 tons of ore remaining. Compute the allowable cost depletion for year 1 and year 2.