Problem
Western Coal expects to produce 75,000 tons of coal annually for 15 years. The deposit cost $2M to acquire. The annual gross revenues are expected to be $8 per ton, and the net revenues are expected to be $3 per ton.
(a) Compute the annual depletion on a cost basis.
(b) Compute the annual depletion on a percentage basis.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.