Determine the amount of depletion expense for current year

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Reference no: EM13755172

Crazy Jim's Mining Co. acquired mineral rights for $21,750,000. The mineral deposit is estimated at 15,000,000 tons. During the current year, 3,600,000 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.

Reference no: EM13755172

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