In 2020, Jackson Mining Company paid $2,768,360 for a coal mine and related equipment. The company estimates that 1,000,000 tons of coal will be extracted over a three year period. After the coal is removed from the site, the mining site will have a residual value of $60,000. During 2020, 300,000 tons of coal were extracted and 275,000 tons of coal were sold.

a. What is the depletion rate per ton? Round to the second decimal place. Show your work and clearly label your answer.

b. Using the rate from your previous answer what is the amount debited to Inventory in 2020? Show your work and clearly label your answer.

c. Using the rate from your previous answer what is the amount debited to Cost of Goods Sold in 2020? Show all your work and clearly label your answer