PA6. LO 11.3 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 $23,100,000 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: 50,000 tons • Year 2: 90,000 tons • Year 3: 100,000 tons • Year 4: 110,000 tons • Year 5: 130,000 tons Calculate the depletion expense for the next five years, and create the journal entry for year one.

PA6. LO 11.3 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 $23,100,000 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: 50,000 tons • Year 2: 90,000 tons • Year 3: 100,000 tons • Year 4: 110,000 tons • Year 5: 130,000 tons Calculate the depletion expense for the next five years, and create the journal entry for year one.

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Description: PA6. LO 11.3 Gimli Miners recently purchased the rights to a diamond mine. It is estimated that there are one million tons ofore within the mine. Gimli paid $23,100,000 for the rights and expects to harvest the ore over the next ten years. The follo

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 3CE

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