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Depletion Entries
Cikan Mining Co. acquired mineral rights for $9,096,000. The mineral deposit is estimated at 75,800,000 tons. During the current year, 11,350,000 tons were mined and sold.
a. Determine the amount of depletion expense for the current year. Round the depletion rate to two decimals places.
b. Journalize the adjusting entry to recognize the depletion expense.
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