Depletion Earth's Treasures Mining Co. acquired mineral rights for $122,500,000. The mineral deposit is estimated at 70,000,000 tons. During the current year, 18,200,000 tons were mined and sold. a. Determine the depletion rate. If required, round your answer to two decimal places.$ per ton b. Determine the amount of depletion expense for the current year.$ c. Journalize the adjusting entry on December 31 to recognize the depletion expense. Dec. 31
Depletion Earth's Treasures Mining Co. acquired mineral rights for $122,500,000. The mineral deposit is estimated at 70,000,000 tons. During the current year, 18,200,000 tons were mined and sold. a. Determine the depletion rate. If required, round your answer to two decimal places.$ per ton b. Determine the amount of depletion expense for the current year.$ c. Journalize the adjusting entry on December 31 to recognize the depletion expense. Dec. 31
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 7BCRQ
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Depletion
Earth's Treasures Mining Co. acquired mineral rights for $122,500,000. The mineral deposit is estimated at 70,000,000 tons. During the current year, 18,200,000 tons were mined and sold.
a. Determine the depletion rate. If required, round your answer to two decimal places.
$ per ton
b. Determine the amount of depletion expense for the current year.
$
c. Journalize the
| Dec. 31 | |||
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