British Columbia Mining Corporation, Agidor, acquired mineral rights for $65,500,000. The mineral deposit is estimated at 25,000,000 tons. During the current year, 3,500,000 tons were mined and sold. Required a. Determine the amount of depletion expense for the current year b. Determine the adjusting entry on December 31 to recognize the depletion expense.
British Columbia Mining Corporation, Agidor, acquired mineral rights for $65,500,000. The mineral deposit is estimated at 25,000,000 tons. During the current year, 3,500,000 tons were mined and sold. Required a. Determine the amount of depletion expense for the current year b. Determine the adjusting entry on December 31 to recognize the depletion expense.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter7: Fixed Assets, Natural Resources, And Intangible Assets
Section: Chapter Questions
Problem 4SEQ
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A British Columbia Mining Corporation, Agidor, acquired mineral rights for $65,500,000. The mineral
deposit is estimated at 25,000,000 tons. During the current year, 3,500,000 tons were mined and sold.
Required
a. Determine the amount of depletion expense for the current year
b. Determine the
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