Solare Company acquired mineral rights for $60,000,000. The diamond deposit is estimated at 6,000,000 tons. During the current year, 2,300,000 tons were mined and sold.
a.Determine the depletion rate.
b.Detemine the amount of depletion expense for the current year:
c.Joumalize the adjusting entry to recognize the depletion expense.

Question

Solare Company acquired mineral rights for $60,000,000. The diamond deposit is estimated at 6,000,000 tons. During the current year, 2,300,000 tons were mined and sold.
 a.Determine the depletion rate.
b.Detemine the amount of depletion expense for the current year:
c.Joumalize the adjusting entry to recognize the depletion expense.

Quizplus · Accepted Answer

The Answer of Solare Company acquired mineral rights for $60,000,000. The diamond deposit is estimated at 6,000,000 tons. During the current year, 2,300,000 tons were mined and sold.
 a.Determine the depletion rate.
b.Detemine the amount of depletion expense for the current year:
c.Joumalize the adjusting entry to recognize the depletion expense.

Solare Company Acquired Mineral Rights for $60,000,000