Question
Tri-City Company acquired mineral rights for $50,000,000. The mineral deposit is estimated at 25,000,000 tons. During the current year, 1,500,000 tons were mined and sold.
Tri-City Company acquired mineral rights for $50,000,000. The mineral deposit is estimated at 25,000,000 tons. During the current year, 1,500,000 tons were mined and sold.
a) Determine the amount of depletion expense for the current year.
b) Journalize the adjusting entry to recognize the depletion expense.
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Management And Cost Accounting
Authors: Colin Drury
6th Edition
1844807037, 978-1844807031
