Underwoods Miners recently purchased the rights to a diamond mine. It is estimated that there are two
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Underwood’s Miners recently purchased the rights to a diamond mine. It is estimated that there are two million tons of ore within the mine. Underwood’s paid $46,000,000 for the rights and expects to harvest the ore over the next fifteen years. The following is the expected extraction for the next five years.
• Year 1: 50,000 tons
• Year 2: 900,000 tons
• Year 3: 400,000 tons
• Year 4: 210,000 tons
• Year 5: 150,000 tons
Calculate the depletion expense for the next five years and create the journal entry for year one.
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Related Book For
Principles Of Accounting Volume 1 Financial Accounting
ISBN: 9781593995942
1st Edition
Authors: Mitchell Franklin, Patty Graybeal, Dixon Cooper, OpenStax
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