ABC Mining acquired a tract of land containing ore deposits. Total costs of acquisition and development were $1,100,000. ABC estimated the land contained 40,000 tons of ore, and that the land will be sold for $100,000 after the coal is mined.What is ABC’s unit depletion rate?

A. a. $40 per ton
B. $50 per ton
C. $25 per ton
D. $20 per ton

For the year ABC mined 13,000 tons and sold 9,000 tons. What is the total depletion and the depletion expense?

A. $325,000 & $225,000
B. $325,000 & $325,000
C. $225,000 & $225,000
D. $275,000 & $225,000

isrecordedonlybytheacquiringentitywhenitbuysanothercompany.