Recording Depletion

Quavo Mining Co. acquired mineral rights for $21,025,000. The mineral deposit is estimated at 51,500,000 tons. During the current year, 10,300,000 tons were mined and sold.

a. Determine the amount of depletion expense for the current year. Do not round intermediate calculation and round your answer to nearest whole value. $fill in the blank 1

b. Illustrate the effects on the accounts and financial statements of the depletion expense. For decreases in accounts or outflows of cash, enter your answers as negative numbers. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank.

		Balance Sheet
		Assets				=	Liabilities	+	Stockholders' Equity
		-	Accumulated depletionAccumulated depreciationCashNo effect	+	Accumulated depletionCashMineral depositsNo effect	=	Accounts payableAccumulated depletionCapital stockNo effect	+	Accounts payableCapital stockRetained earningsNo effect
			fill in the blank 6		fill in the blank 7		fill in the blank 8		fill in the blank 9
	Statement of Cash Flows						Income Statement
	FinancingInvestingOperatingNo effect		fill in the blank 11