A Company Acquired Mineral Rights for $7,500,000 $\quad$ $\quad$ $\quad$ $\quad$

question 62

Essay

A company acquired mineral rights for $7,500,000. The mineral deposit is estimated at 600,000 tons and during the year 100,000 tons were extracted and sold.
Calculate depletion expense for the year. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ (a)
Show the effects of (a) on the accounts and the financial statements of the company. $\quad$$\quad$ (b)
What is the book value of the mineral rights at the end of the current year? $\quad$$\quad$$\quad$$\quad$$\quad$ (c)

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