Backwoods Mining Co. acquired mineral rights for $17,094,000. The mineral deposit is estimated at 122,100,000 tons. During the current year, 18,300,000 tons were mined and sold.

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a. Determine the amount of depletion expense for the current year. Round the depletion rate to two decimal places. $fill in the blank 512120f9bfd801e_1

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Similar to the units-of-production method to depreciate a fixed asset, the depletion rate that is calculated stays constant no matter how much of the natural resource is extracted.

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b. Journalize the adjusting entry on December 31 to recognize the depletion expense. If an amount box does not require an entry, leave it blank.

blank	Accumulated DepletionDepletion ExpenseDepletion PayableMineral RightsRepairs and Maintenance ExpenseDepletion Expense	Depletion Expense	Depletion Expense
	Accumulated DepletionCashDepletion ExpenseDepletion PayableRepairs and Maintenance ExpenseAccumulated Depletion	Accumulated Depletion	Accumulated Depletion