Caldwell Mining Co. acquired mineral rights for $127,500,000. The mineral deposit is estimated at 425,000,000 tons. During the current year, 42,000,000 tons were mined and sold.

	Required:
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.