Question
Depletion Intra-Spect Mining Co. acquired mineral rights for $112,000,000. The mineral deposit is estimated at 70,000,000 tons. During the current year, 21,700,000 tons were mined
Depletion
Intra-Spect Mining Co. acquired mineral rights for $112,000,000. The mineral deposit is estimated at 70,000,000 tons. During the current year, 21,700,000 tons were mined and sold.
a. Determine the depletion rate. If required, round your answer to two decimal places. $fill in the blank 44f80509a005077_1 per ton
b. Determine the amount of depletion expense for the current year. $fill in the blank 44f80509a005077_2
c. Journalize the adjusting entry on December 31 to recognize the depletion expense. If an amount box does not require an entry, leave it blank.
| Dec. 31 | Accumulated DepletionAccumulated DepreciationDepletion ExpenseDepreciation ExpenseCashMineral Deposit | - Select - | - Select - |
| Accumulated DepreciationAccumulated DepletionCashDepletion ExpenseDepreciation ExpenseMineral Deposit | - Select - | - Select - |
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Macroeconomics
Authors: Olivier J. Blanchard
7th Global Edition
1292160500, 978-1292160504
