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: (a) Determine the amount of depletion expense for the current year.
(b) Journalize the adjusting entry to recognize the depletion expense.

Question

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: (a) Determine the amount of depletion expense for the current year.
(b) Journalize the adjusting entry to recognize the depletion expense.

Quizplus · Accepted Answer

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: (a) Determine the amount of depletion expense for the current year.
(b) Journalize the adjusting entry to recognize the depletion expense.

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