Recording Depletion Quavo Mining Co. acquired mineral rights for $21,025,000. The mineral deposit is estimated at 59,000,000 tons. During the current year, 11,800,000 tons were mined and sold. a. Determine the amount of depletion expense for the current year. Round intermediate calculations to two decimal places and use rounded amounts in subsequent calculations. Round your answer to the nearest dollar. b. Illustrate the effects on the accounts and financial statements of the depletion expense. Enter account decreases, cash outflows, and the income statement effects that decrease net income as negative amounts. However, for contra asset accounts, enter account increases as a negative value. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Financial Statement Effects Assets Statement of Cash Flows Balance Sheet Liabilities + Stockholders' Equity Income Statement

Quavo Mining Co. acquired mineral nghts for $21,025,000. The mineral deposit is estimated at 59,000,000 tons. During the carrent vear, 11,800,000 tans were mined and solis a. Determine the amount of depletion expense for the current year. Round intermediate calculations to two decimal places and use rounded amounts in subsequent calculations. Round your answer to the nearest dollar. b. Whustrate the effects on the accounts and financial statements of the depletion expense. Fnter account degreases, cash outflows, and the income statement effects that decrease net income as negative amounts. However, for contra asset accounts, enter account increases as a negative value. II no account or activity is affected, select "No effect" from the dropdown and leave the corresponding aumber entry box blank. Equipment acquired on January 3, 20Y1, at a cost of \$\$42,500, has an estimsted useful life of 18 years and an estimated residual value of $75,950. a. What was the annual amount of depreoution for the vears 20Y1, 20y2, and 20y, using the straghe- line method of depreciation? Round annisal depreciation to the nearest dollar and use this amount in your follow on calculations. b. What was the book value of the egupment on January 1,20r4 ? For decreases in accounts or outflows of cash, enter vour 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. Quavo Miring Co, acquired mineral nohts for $21,025,000. The mineral deposit is estamated at 59,000,000 tons. During the current yeag, 11,800,000 tons were mined and sold a. Determine the amount of depletion expense for the current year. Round intermediate colculations to two decimal places and use rounded amounts in subequent calculations. Round your answer to the nearest dollar. b. Illustrate the effects on the accounts and financial statements of the depletion expense: Enter account decreases, cash outflows, and the income statement elfects that decrease net income as negative amounts. However, for contra asset accounts, enter account increases as a negative value. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. or decreases in accounts or outllows of cash, enter your answers as negative numbers. If no account or activity is affected, select "No etfect" from thr ropdown and leave the corresponding number entry box blank. Assurning that the equipment was sold on lanuary 2,2044 , for 5189,875 , illustrate the effects on the accounts ard finarical statements of the sale