Hidden Hollow Mining Co$.$ acquired mineral rights for $$76,500,000.$ The mineral deposit is estimated at $90,000,000$ tons. During the current year, $23,400,000$ tons were mined and sold.

a$.$ Determine the depletion rate. If required, round your answer to two decimal places.

$

$x$ per ton

b$.$ Determine the amount of depletion expense for the current year.

$

$x$

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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.

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.

December $31$

$$

Accumulated Depletion $$

$x$

$x$

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