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. a. Determine the depletion rate. If required, round your answer to two decimal places. $fill in the blank d39a0a00ffc1f93_1 per ton b. Determine the amount of depletion expense for the current year. $fill in the blank d39a0a00ffc1f93_2 Feedback Similar to the units-of-production method to depreciate a fixed asset, the depletion rate that is calculated stays constant no matter how much of the natural resource is extracted. c. Journalize the adjusting entry on December 31 to recognize the depletion expense. If an amount box does not require an entry, leave it blank. Dec. 31 Depletion Expense fill in the blank 1c7c11ffcfaff92_2 fill in the blank 1c7c11ffcfaff92_3 Accumulated Depletion fill in the blank 1c7c11ffcfaff92_5 fill in the blank 1c7c11ffcfaff92_6
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. a. Determine the depletion rate. If required, round your answer to two decimal places. $fill in the blank d39a0a00ffc1f93_1 per ton b. Determine the amount of depletion expense for the current year. $fill in the blank d39a0a00ffc1f93_2 Feedback Similar to the units-of-production method to depreciate a fixed asset, the depletion rate that is calculated stays constant no matter how much of the natural resource is extracted. c. Journalize the adjusting entry on December 31 to recognize the depletion expense. If an amount box does not require an entry, leave it blank. Dec. 31 Depletion Expense fill in the blank 1c7c11ffcfaff92_2 fill in the blank 1c7c11ffcfaff92_3 Accumulated Depletion fill in the blank 1c7c11ffcfaff92_5 fill in the blank 1c7c11ffcfaff92_6
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Depletion
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.
a. Determine the depletion rate. If required, round your answer to two decimal places.
$fill in the blank d39a0a00ffc1f93_1 per ton
b. Determine the amount of depletion expense for the current year.
$fill in the blank d39a0a00ffc1f93_2
Similar to the units-of-production method to
c. Journalize the
| Dec. 31 | Depletion Expense | fill in the blank 1c7c11ffcfaff92_2 | fill in the blank 1c7c11ffcfaff92_3 |
| Accumulated Depletion | fill in the blank 1c7c11ffcfaff92_5 | fill in the blank 1c7c11ffcfaff92_6 |
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