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Depletion Caldwell Mining Co. acquired mineral rights for $42.500.000. The mineral deposit is estimated at 50,000.000 tons. D
Me How Calculator Print Item Depletion Caldwell Mining Co. acquired mineral rights for $42,500,000. The mineral deposit is es
b. Determine the amount of depletion expense for the current year. c. Journalize the adjusting entry on December 31 to recogn
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Answer #1

a) Depletion rate = 42500000/50000000 = 0.85 per ton

b) Depletion expense = 12500000*.85 = 10625000

c) Journal entry

Dec 31 Depletion expense 10625000
Accumulated depletion 10625000
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