Question Content Area

Depletion

Intra-Spect Mining Co. acquired mineral rights for $36,000,000. The mineral deposit is estimated at 30,000,000 tons. During the current year, 6,000,000 tons were mined and sold.

Question Content Area

a. Determine the depletion rate. If required, round your answer to two decimal places. $fill in the blank bb0a90005f8901b_1 per ton

b. Determine the amount of depletion expense for the current year. $fill in the blank bb0a90005f8901b_2

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. 31Accumulated DepletionAccumulated DepreciationDepletion ExpenseDepreciation ExpenseCashMineral Deposit- Select -- Select - Accumulated DepreciationAccumulated DepletionCashDepletion ExpenseDepreciation ExpenseMineral Deposit- Select -- Select