Prepare journal entry to record depletion


Everly corporation acquires a coal mine at a cost of $400,000. intangible development cost total $100,000. after extraction has occurred, everly must restore the property (estimated fair value of the obligation is $80,000), after which it can be sold for $160,000. everly estimates that 4,000 tons of coal can be extracted. if 700 tons are extracted the first year, prepare journal entry to record depletion.

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Accounting Basics: Prepare journal entry to record depletion
Reference No:- TGS0706410

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