Kewais Company invested $ 6 million for the rights to explore and extract natural resources from land in Ukraine. The company estimated that a total of 1.5 million tonnes of ore would be extracted from the property. The company extracted 50,000 tonnes of ore Year 1, 110,000 tonnes of ore Year 2, and 205,000 tonnes of ore Year 3.
Instructions
Prepare the necessary journal entries to record depletion expense in Year 1, Year 2 and Year 3.

Question

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The Answer of Kewais Company invested $ 6 million for the rights to explore and extract natural resources from land in Ukraine. The company estimated that a total of 1.5 million tonnes of ore would be extracted from the property. The company extracted 50,000 tonnes of ore Year 1, 110,000 tonnes of ore Year 2, and 205,000 tonnes of ore Year 3.
Instructions
Prepare the necessary journal entries to record depletion expense in Year 1, Year 2 and Year 3.

Kewais Company Invested $ 6 Million for the Rights to Explore