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Intra-Spect Mining Co. acquired mineral rights for $70,000,000. The mineral deposit is estimated at 50,000,000 tons. During the current year, 10,500,000 tons wen mined and sold. a. Determine the depletion rate. If required, round your answer to two decimal places. $ per ton b. Determine the amount of depletion expense for the current year. Feedback Check My Work 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 Accumulated Depletion

Intra-Spect Mining Co. acquired mineral rights for $70,000,000. The mineral deposit is estimated at 50,000,000 tons. During the current year, 10,500,000 tons wen mined and sold. a. Determine the depletion rate. If required, round your answer to two decimal places. $ per ton b. Determine the amount of depletion expense for the current year. Feedback Check My Work 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 Accumulated Depletion

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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agenow.com/ilmn/takeAssignment/takeAssignment Main.do?invoker=&takeAssignmentSession Locator=&inprogress=... A d eBook Depletion Intra-Spect Mining Co. acquired mineral rights for $70,000,000. The mineral deposit is estimated at 50,000,000 tons. During the current year, 10,500,000 tons were mined and sold. a. Determine the depletion rate. If required, round your answer to two decimal places. $ per ton b. Determine the amount of depletion expense for the current year. Feedback Show Me How ▾ Check My Work 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 Accumulated Depletion Feedback Feedback Check My Work Similar to the journal entry to record depreciation, the journal entry to record depletion affects a contra asset account. Check My Work V Previous G Next
Transcribed Image Text:agenow.com/ilmn/takeAssignment/takeAssignment Main.do?invoker=&takeAssignmentSession Locator=&inprogress=... A d eBook Depletion Intra-Spect Mining Co. acquired mineral rights for $70,000,000. The mineral deposit is estimated at 50,000,000 tons. During the current year, 10,500,000 tons were mined and sold. a. Determine the depletion rate. If required, round your answer to two decimal places. $ per ton b. Determine the amount of depletion expense for the current year. Feedback Show Me How ▾ Check My Work 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 Accumulated Depletion Feedback Feedback Check My Work Similar to the journal entry to record depreciation, the journal entry to record depletion affects a contra asset account. Check My Work V Previous G Next
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