Cooper Gate Mining Co. acquired mineral rights for $16,500,000. The mineral deposit is estimated at 75,000,000 tons. During the current year, 29,800,000 tons were mined and sold.
a. Determine the amount of depletion expense for the current year.
b. Illustrate the effects on the accounts and financial statements of the depletion expense. For decreases in accounts or outflows of cash, enter your answers as negative numbers.