If a coal deposit has 700,000 tons available and was purchased for $1,750,000, record the removal of 50,000 tons in year 1 and 70,000 tons in year 2
What will be an ideal response?
Answer:
Year 1
Depletion Expense—Coal Deposit 125,000
Accumulated Depletion, Coal Deposit 125,000
Year 2
Depletion Expense—Coal Deposit 175,000
Accumulated Depletion, Coal Deposit 175,000
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