Compute the annual depletion on a cost basis

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Reference no: EM131809883

Eastern Gravel expects to produce 60,000 tons of gravel annually for 5 years. The deposit cost $150K to acquire; the annual gross revenues are expected to be $9 per ton, and the net revenues are expected to be $4 per ton. (a) Compute the annual depletion on a cost basis. (a) Compute the annual depletion on a percentage basis.

Reference no: EM131809883

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