Butte Mining Co. acquired mineral rights for ($ 36,000,000). The mineral deposit is estimated at (75,000,000) tons.
Question:
Butte Mining Co. acquired mineral rights for \(\$ 36,000,000\). The mineral deposit is estimated at \(75,000,000\) tons. During the current year, \(29,350,000\) tons were mined and sold.
a. Determine the depletion rate.
b. Determine the amount of depletion expense for the current year.
c. Journalize the adjusting entry on December 31 to recognize the depletion expense.
objs. 4,5
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Financial Accounting
ISBN: 9780324380675
10th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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