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15 June, 00:46

Sands Company purchased mining rights for $500,000. They expect to harvest 1 million tons of ore over the next five years. During the current year, Sands mined 350,000 tons of ore. The entry to record the depletion would include

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  1. 15 June, 03:30
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    I believe they would have an entry showing 35 % depletion for the current year ie 350,000/1000,000 tons. Also, they could most likely retire $175,000 of the mining rights cost or 35% of 500,000 presuming the net revenue was greater than the $175,000.
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