Down Deep Mining Co. acquired mineral rights for $62,000,000. The mineral deposit is estimated at 40,000,000 tons. During the current year, 8,800,000 tons were mined and sold.

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a. Determine the depletion rate. If required, round your answer to two decimal places. $fill in the blank d76afe00306f068_1 per ton

b. Determine the amount of depletion expense for the current year. $fill in the blank d76afe00306f068_2

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Similar to the units-of-production method to depreciate a fixed asset, the depletion rate that is calculated stays constant no matter how much of the natural resource is extracted.

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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 DepositDepletion Expense	Depletion Expense	Depletion Expense
	Accumulated DepreciationAccumulated DepletionCashDepletion ExpenseDepreciation ExpenseMineral DepositAccumulated Depletion	Accumulated Depletion	Accumulated Depletion

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Similar to the journal entry to record depreciation, the journal entry to record depletion affects a contra asset account.

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Partially correct

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