On January 1,2018,Superior Mining Co

question 292

Essay

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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Definitions:

Autonomous Responding

The ability of an individual to respond independently to stimuli or situations, based on their own choices or internal processes.

Dysfunctional Pattern

Maladaptive behaviors and patterns that interfere with an individual or group’s ability to function effectively.

Catharsis

The process of releasing and thereby providing relief from strong or repressed emotions, often considered therapeutic.

Ordeal Therapy

A form of therapy that employs challenging or uncomfortable tasks to reduce or eliminate undesired behaviors or thoughts.