Chasteen Company acquired mineral rights for $9,100,000.The mineral deposit is estimated at 65,000,000 tons.During the current year,18,375,000 tons were mined and sold.
Required:
1 Determine the amount of depletion expense for the current year.
2 Journalize the adjusting entry to recognize the depletion expense.

Question

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The Answer of Chasteen Company acquired mineral rights for $9,100,000.The mineral deposit is estimated at 65,000,000 tons.During the current year,18,375,000 tons were mined and sold.
Required:
1 Determine the amount of depletion expense for the current year.
2 Journalize the adjusting entry to recognize the depletion expense.

Chasteen Company Acquired Mineral Rights for $9,100,000