Colorado Mining paid $$600,000$ to acquire a mine with $40,000$ tons of coal reserves. The horizontal statements model reflects Colorado Mining's financial condition just prior to purchasing the coal reserves. The company extracted $15,000$ tons of coal in Year $1$ and $18,000$ tons in Year $2.$

Required

a$.$ Compute the depletion charge per unit.

b$.$ Record the acquisition of the coal reserves and the depletion expense for years $1$ and $2$ in a financial statements model like the preceding one.

c$.$ Prepare the general journal entries to record the depletion expense for years $1$ and $2.$

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Compute the depletion charge per unit.

Depletion charge per unit