On January 1,2018,Superior Mining Co.paid $750,000 for a mineral deposit in Superior,Arizona,and then spent $112,500 to develop the deposit for exploitation.It was estimated that 690,000 total cubic yards could be extracted economically.During 2018,69,000 cubic yards of minerals were extracted;the minerals have not yet been sold.
Required:
Part a.Compute the amount of depletion expense for 2018.
Part b.Prepare the journal entry to record the 2018 depletion.

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The Answer of On January 1,2018,Superior Mining Co.paid $750,000 for a mineral deposit in Superior,Arizona,and then spent $112,500 to develop the deposit for exploitation.It was estimated that 690,000 total cubic yards could be extracted economically.During 2018,69,000 cubic yards of minerals were extracted;the minerals have not yet been sold.
Required:
Part a.Compute the amount of depletion expense for 2018.
Part b.Prepare the journal entry to record the 2018 depletion.