Poff Mining Co$.$ acquired mineral rights for $$195,650,000.$ The mineral deposit is estimated at $559,000,000$ tons. During the current year, $22,900,000$ tons were mined and sold.

Question Content Area

a$.$ Determine the depletion rate. Round your answer to two decimal places.

$fill in the blank $498940096$fc$6011\_1$

$2\mathrm{.}86$

per ton

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

$fill in the blank $498940096$fc$6011\_2$

$65,494,000$

Feedback Area

Feedback

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.

Question Content Area

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. $31$