A company purchased mining property for $1,837,500 containing an estimated 7,350,000 tons of ore.When mining is complete,the property will have no salvage value.In Year 1,it mined and sold 857,000 tons of ore.Calculate the depletion expense for Year 1 and prepare the journal entry to record the depletion.

Question

Quizplus · Accepted Answer

The Answer of A company purchased mining property for $1,837,500 containing an estimated 7,350,000 tons of ore.When mining is complete,the property will have no salvage value.In Year 1,it mined and sold 857,000 tons of ore.Calculate the depletion expense for Year 1 and prepare the journal entry to record the depletion.

A Company Purchased Mining Property for $1,837,500 Containing an Estimated