MacLean Corp

question 89

Essay

MacLean Corp.purchased a mine on January 1,2016,for $500,000 .The mine is estimated to contain 30,000 tons of iron ore.There is no residual value.The business has extracted and sold 2,500 tons of ore in 2016.Prepare the journal entry to record depletion expense for 2016.(Round your intermediate calculations to the nearest cent. )

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Definitions:

Bumper Crop

An exceptionally large harvest of crops, often resulting from favorable growing conditions.

Excess Supply

A situation where the quantity of a good or service offered for sale exceeds the quantity demanded at the current price.

Price Of Cheeseburgers

The amount of money required to purchase a cheeseburger in a particular market, influenced by factors such as cost of ingredients, demand, and competition.

Supply Shifts

Changes in the supply curve of a product or service due to external factors, leading to a different quantity supplied at each price level.