medium · Financial Accounting assets

A mining company revises its estimate of the total tons of ore in a mine from 1,000,000 tons to 800,000 tons. This change in estimate will result in:

1. Higher depletion expense per ton in the current and future periods.
2. A loss on impairment of the mine recorded in the current year.
3. Restating the depletion taken in previous years to match the $800,000-ton total.
4. Lower depletion expense because there is less ore to deplete.

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