Problem
Western Carolina Coal Co. expects to produce 125,000 tons of coal annually for 15 years. The deposit cost $3M to acquire; the annual gross revenues are expected to be $9.50 per ton, and the net revenues are expected to be $4.25 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.