Glacier Mining Co. acquired mineral rights for $148,352,000. The mineral deposit is estimated at 390,400,000 tons. During the current year, 49,868,000 tons were mined and sold. 

A. Determine the depletion rate. Round your answer to two decimal places. 

B. Determine the amount of depletion expense for the current year. 

C. Journalize the adjusting entry on December 31 to recognize the depletion expense. Refer to the Chart of Accounts for the exact wording of account titles.

	ASSETS
110	Cash
111	Petty Cash
112	Accounts Receivable
114	Interest Receivable
115	Notes Receivable
116	Merchandise Inventory
117	Supplies
119	Prepaid Insurance
120	Land
123	Delivery Truck
124	Accumulated Depreciation-Delivery Truck
125	Equipment
126	Accumulated Depreciation-Equipment
130	Mineral Rights
131	Accumulated Depletion
132	Goodwill
133	Patents

	LIABILITIES
210	Accounts Payable
211	Salaries Payable
213	Sales Tax Payable
214	Interest Payable
215	Notes Payable

	EQUITY
310	Common Stock
311	Retained Earnings
312	Dividends
313	Income Summary

	REVENUE
410	Sales
610	Interest Revenue
620	Gain on Sale of Delivery Truck
621	Gain on Sale of Equipment
622	Gain on Sale of Mineral Rights

	EXPENSES
510	Cost of Merchandise Sold
520	Salaries Expense
521	Advertising Expense
522	Depreciation Expense-Delivery Truck
523	Delivery Expense
524	Repairs and Maintenance Expense
529	Selling Expenses
531	Rent Expense
532	Depreciation Expense-Equipment
533	Depletion Expense
534	Amortization Expense-Patents
535	Insurance Expense
536	Supplies Expense
539	Miscellaneous Expense
710	Interest Expense
720	Loss on Sale of Delivery Truck
721	Loss on Sale of Equipment
722	Loss on Sale of Mineral Rights

Answer rating: 100% (QA)

1 CALCULATE DEPLETION RATE Depletion rate Original cost of mineral RightsExpected Mineral tones extr... View the full answer