Oriole Corporation acquires a coal mine at a cost of $$494,400.$ Intangible development costs total $$120,000.$ After extraction has occurred, Oriole must restore the property $($estimated fair value of the obligation is $$96,000),$ after which it can be sold for $$192,000.$ Oriole estimates that $4,800$ tons of coal can be extracted.

If $840$ tons are extracted the first year, prepare the journal entry to record depletion. $($If no entry is required, select $"$No entry" for the account titles and enter $0$ for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.$)$

Account Titles and Explanation

Debit

CreditN