The Bonnington Company purchased a coal mine for $1.4 million in 2000. The company expected to be
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The Bonnington Company purchased a coal mine for $1.4 million in 2000. The company expected to be able to mine 500,000 tons of coal from this mine over the next 10 years, after which it expected to sell the land for $200,000. During 2000, the company mined and sold 20,000 tons of coal. Early in 2001, the company revised its estimate of the total remaining tons to be mined to 580,000 tons. During 2001, the company mined and sold 40,000 tons.
Required: Using T-accounts, record the depletion expense for 2000 and 2001.
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Related Book For
Accounting Information For Business Decisions
ISBN: 9780030224294
1st Edition
Authors: Billie Cunningham, Loren A. Nikolai, John Bazley
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