Gimli Miners recently purchased the rights to a diamond mine. It is estimated that there are one million tons of ore within the mine. Gimli paid $23,400,000 for the rights and expects to harvest the ore over the next ten years. The following is the expected extraction for the next five years.Year 1:52,000 tons Year 2:94,000 tons Year 3:150,000 tons Year 4:160,000 tons Year 5:180,000 tons Calculate the depletion expense for the next five years. Do not round intermediate calculations.Year 1$Year 2$Year 3$Year 4$Year 5$Prepare the journal entry for year one. If an amount box does not require an entry, leave it blank. Gimli Miners recently purchased the rights to a diamond mine. It is estimated that there are one million tons of ore within the mine. Gimli paid $23,400,000 for the rightsand expects to harvest the ore over the next ten years. The following is the expected extraction for the next five years.Year 1:52,000 tonsYear 2:94,000 tonsYear 3: 150,000 tonsYear 4: 160,000 tonsYear 5: 180,000 tonsCalculate the depletion expense for the next five years. Do not round intermediate calculations.Year 1$Year 2Year 3%2$Year 4Year 5Prepare the journal entry for year one. If an amount box does not require an entry, leave it blank.%24%24

Depletion is the reduction in value of natural resources over the period of time. This is charged as…

Answered: Gimli Miners recently purchased the…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 6PA: Gimli Miners recently purchased the rights to a diamond mine. It is estimated that there are one...

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Gimli Miners recently purchased the rights to a diamond mine. It is estimated that there are one million tons of ore within the mine. Gimli paid $23,400,000 for the rights and expects to harvest the ore over the next ten years. The following is the expected extraction for the next five years.

Year 1:	52,000 tons
Year 2:	94,000 tons
Year 3:	150,000 tons
Year 4:	160,000 tons
Year 5:	180,000 tons

Calculate the depletion expense for the next five years. Do not round intermediate calculations.

Year 1	$
Year 2	$
Year 3	$
Year 4	$
Year 5	$

Prepare the journal entry for year one. If an amount box does not require an entry, leave it blank.

Gimli Miners recently purchased the rights to a diamond mine. It is estimated that there are one million tons of ore within the mine. Gimli paid $23,400,000 for the rights
and expects to harvest the ore over the next ten years. The following is the expected extraction for the next five years.
Year 1:
52,000 tons
Year 2:
94,000 tons
Year 3: 150,000 tons
Year 4: 160,000 tons
Year 5: 180,000 tons
Calculate the depletion expense for the next five years. Do not round intermediate calculations.
Year 1
$
Year 2
Year 3
%2$
Year 4
Year 5
Prepare the journal entry for year one. If an amount box does not require an entry, leave it blank.
%24
%24

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