Question
Tyler Industries operates a mineral deposit with an estimated 1,500,000 tons of available ore. The mineral deposit was purchased for $1,500,000, and no salvage value
Tyler Industries operates a mineral deposit with an estimated 1,500,000 tons of available ore. The mineral deposit was purchased for $1,500,000, and no salvage value is expected. A total of 200,000 tons are mined, but only 100,000 tons were sold during the year. How would the company record this transaction?
Debit Depletion Expense-Mineral Deposit for $100,000, debit Ore Inventory for $100,000, and credit Accumulated Depletion-Mineral Deposit for $200,000.
Debit Depletion Expense-Mineral Deposit for $200,000 and credit Accumulated Depletion-Mineral Deposit for $200,000.
Debit Depletion Expense-Mineral Deposit for $100,000 and credit Accumulated Depletion-Mineral Deposit for $100,000.
Debit Mineral Expense for $200,000 and credit Mineral Deposit for $200,000.
Debit Amortization Expense-Mineral Deposit for $200,000, credit Ore Deposit for $100,000 and credit Accumulated Depletion-Mineral Deposit for $100,000.
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