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Question 5. Sands Company purchased mining rights for $500,000. They expect to harvest 1 million tons of ore over the next five years. During the current year, Sands mined 350,000 tons of ore. The entry to record the depletion would include: 1. a debit to Depletion Expense for $175,000 2. a credit to Depletion Expense for $350,000 3. a debit to Accumulated Depletion for $175,000 4. a credit to Accumulated Depletion for $350,000

Question 5. Sands Company purchased mining rights for $500,000. They expect to harvest 1 million tons of ore over the next five years. During the current year, Sands mined 350,000 tons of ore. The entry to record the depletion would include: 1. a debit to Depletion Expense for $175,000 2. a credit to Depletion Expense for $350,000 3. a debit to Accumulated Depletion for $175,000 4. a credit to Accumulated Depletion for $350,000

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 6PB: Underwoods Miners recently purchased the rights to a diamond mine. It is estimated that there are...
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Question 5. Sands Company purchased mining rights for $500,000. They expect to harvest 1 million tons of ore over the next five years. During the current year, Sands mined 350,000 tons of ore. The entry to record the depletion would include:

1. a debit to Depletion Expense for $175,000

2. a credit to Depletion Expense for $350,000

3. a debit to Accumulated Depletion for $175,000

4. a credit to Accumulated Depletion for $350,000

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