Hidden Hollow Mining Co. acquired mineral rights for S69,000,000. The mineral deposit is estimated at60,000,000 tons. During the current year, 13,200,000 tons were mined and sold.a. Determine the depletion rate. If required, round your answer to two decimal places.Sfill in the blank d39a0a00ffc1f93_1 per tonb. Determine the amount of depletion expense for the current year.Sfill in the blank d39a0a00ffc1f93_2

Formula: Depletion expense for current year = Depletion per ton x Number of tons mined

Answered: Hidden Hollow Mining Co. acquired…

Hidden Hollow Mining Co. acquired mineral rights for $69,000,000. The mineral deposit is estimated at 60,000,000 tons. During the current year, 13,200,000 tons were mined and sold.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 6CE

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Question

Hidden Hollow Mining Co. acquired mineral rights for S69,000,000. The mineral deposit is estimated at
60,000,000 tons. During the current year, 13,200,000 tons were mined and sold.
a. Determine the depletion rate. If required, round your answer to two decimal places.
Sfill in the blank d39a0a00ffc1f93_1 per ton
b. Determine the amount of depletion expense for the current year.
Sfill in the blank d39a0a00ffc1f93_2

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