Alaska Mining Co. acquired mineral rights for $67,500,000. The mineral deposit is estimated at 30,000,000 tons. During the current year, 4,000,000 tons were mined and sold.a. Determine the amount of depletion expense for the current year.b. Journalize the adjusting entry on December 31 to recognize the depletion expense.

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
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Chapter7: Fixed Assets, Natural Resources, And Intangible Assets
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Alaska Mining Co. acquired mineral rights for $67,500,000. The mineral deposit is estimated at 30,000,000 tons. During the current year, 4,000,000 tons were mined and sold.
a. Determine the amount of depletion expense for the current year.
b. Journalize the adjusting entry on December 31 to recognize the depletion expense.

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