Ashwood mining co acquired mineral rights for 15000000 the, Ask an Expert

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Ashwood Mining Co. acquired mineral rights for $15,000,000. The mineral deposit is estimated at 120,000,000 tons. During the current year, 24,000,000 tons were mined and sold.

a. Determine the amount of depletion expense for the current year.

b. Journalize the adjusting entry to recognize the depletion expense.

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Category:- Accounting Basics
Reference No.:- M9991127

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