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Colorado Mining paid $588,000 to acquire a mine with 42,000 tons of coal reserves. The financial statements model in Required B reflects Colorado Mining's
Colorado Mining paid $588,000 to acquire a mine with 42,000 tons of coal reserves. The financial statements model in Required B reflects Colorado Mining's financial condition just prior to purchasing the coal reserves. The company extracted 22,050 tons of coal in year 1 and 18,900 tons in year 2. Required: a. Compute the depletion charge per ton. b. Record the acquisition of the coal reserves and the depletion expense for years 1 and 2 in a financial statements model. Complete this question by entering your answers in the tabs below. Required A Required B Compute the depletion charge per ton. Depletion charge per ton per ton < Required A Required B >
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