Compute the depletion expense


Compute the depletion expense in 2013 and 2014 for financial accounting purposes. What accounts will be diebited and credited to record the depletion? In 2013, 20,500 ton of ore were sold for $2,050,000. For tax purposes, operating expenses delpetion, which for the type ire produced is 8% of production sold from the mine. (Assume, however, that percentage depletion is limited to the amount of net income from the property) What would be the amount of percentage depletion allowable in 2013?

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Accounting Basics: Compute the depletion expense
Reference No:- TGS0522717

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