Depletion entries OBJ. 4 Big Sky Mining Co. acquired mineral rights for $42,000,000. The mineral deposit is

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Depletion entries OBJ. 4 Big Sky Mining Co. acquired mineral rights for $42,000,000. The mineral deposit is estimated at 20,000,000 tons. During the current year, 1,850,000 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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Financial And Managerial Accounting

ISBN: 9781305267831,9781305267848

13th Edition

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

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