In 2013 a Mining Company Paid $150,000 for Mining Rights

question 51

Short Answer

In 2013 a mining company paid $150,000 for mining rights. It is estimated that a total of 200,000 tons of ore are available to be extracted. During 2013, 18,000 tons of ore were mined. What is the amount of Depletion Expense recorded in the adjusting entry for 2013?

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Definitions:

U.S. Exchanges

Marketplaces in the United States where securities, options, and futures are traded.

Conceptual Framework

An organized system of objectives and fundamentals that can lead to consistent standards in accounting and guides the selection of transactions to be accounted for.

IFRS

International Financial Reporting Standards, a set of international accounting standards stating how particular types of transactions and other events should be reported in financial statements.

GAAP

Generally Accepted Accounting Principles, a set of rules encompassing the details, complexities, and legalities of business and corporate accounting.