Depletion Maxwell Mining Co. acquired mineral rights for $30,000,000. The mineral deposit is estimated at $100,000,000 tons, patents expense for $45,000, accumulated depreciation for $10,000. During the current year, 10,000,000 tons were mined and sold. A. Determine the depletion rate B. Determine the amount of depletion expense for the current year C. Journalize the entry to record the depletion
Depletion Maxwell Mining Co. acquired mineral rights for $30,000,000. The mineral deposit is estimated at $100,000,000 tons, patents expense for $45,000, accumulated depreciation for $10,000. During the current year, 10,000,000 tons were mined and sold. A. Determine the depletion rate B. Determine the amount of depletion expense for the current year C. Journalize the entry to record the depletion
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Depletion
Maxwell Mining Co. acquired mineral rights for $30,000,000. The mineral deposit is estimated at $100,000,000
tons, patents expense for $45,000, accumulated depreciation for $10,000. During the current year, 10,000,000 tons
were mined and sold.
A. Determine the depletion rate
B. Determine the amount of depletion expense for the current year
C. Journalize the entry to record the depletion
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