Question
Brief Exercise 11-9 Headland Corporation acquires a coal mine at a cost of $460,000. Intangible development costs total $115,000. After extraction has occurred, Headland must
Brief Exercise 11-9 Headland Corporation acquires a coal mine at a cost of $460,000. Intangible development costs total $115,000. After extraction has occurred, Headland must restore the property (estimated fair value of the obligation is $92,000), after which it can be sold for $184,000. Headland estimates that 4,600 tons of coal can be extracted. If 805 tons are extracted the first year, prepare the journal entry to record depletion. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started