A Trinidad Bauxite Corporation, Sparrow, acquired mineral rights for $58,500,000. The mineral deposit is estimated at 20,000,000 tons. During the current year, 3,200,000 tons were mined and sold. Required: Determine the amount of depletion expense for the current year Determine the adjusting entry on December 31 to recognize the depletion expense.

A Trinidad Bauxite Corporation, Sparrow, acquired mineral rights for $58,500,000. The mineral deposit is estimated at 20,000,000 tons. During the current year, 3,200,000 tons were mined and sold. Required: Determine the amount of depletion expense for the current year Determine the adjusting entry on December 31 to recognize the depletion expense.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 6CE

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