Intra-Spect Mining Co. acquired mineral rights for $78,000,000. The mineral deposit is estimated at 60,000,000 tons. During the current year, 13,800,000 tons weremined and sold.a. Determine the depletion rate. If required, round your answer to two decimal places.$4per tonb. Determine the amount of depletion expense for the current year.$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 rate= cost of mineral right/estimated tons

Intra-Spect Mining Co. acquired mineral rights for $78,000,000. The mineral deposit is estimated at 60,000,000 tons. During the current year, 13,800,000 tons we 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. 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. 88 Dec. 31

Intra-Spect Mining Co. acquired mineral rights for $78,000,000. The mineral deposit is estimated at 60,000,000 tons. During the current year, 13,800,000 tons we 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. 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. 88 Dec. 31

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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