Crazy Jims Mining Co. acquired mineral rights for $21,750,000. The mineral deposit is estimated at 15,000,000 tons.

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Crazy Jim’s Mining Co. acquired mineral rights for $21,750,000. The mineral deposit is estimated at 15,000,000 tons. During the current year, 3,600,000 tons were mined and sold.

a. Determine the amount of depletion expense for the current year.

b. Journalize the adjusting entry to recognize the depletion expense.

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Corporate Financial Accounting

ISBN: 978-1133952411

12th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

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Question Posted: Feb 28, 2014 08:39 AM

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Crazy Jims Mining Co. acquired mineral rights for $21,750,000. The mineral deposit is estimated at 15,000,000 tons.

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a 21750000 15000000 tons 145 depleti...View the full answer

Corporate Financial Accounting

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