On January 1,2016,Morris Minerals Paid $300,000 for a Mineral Deposit

Essay

On January 1,2016,Morris Minerals paid $300,000 for a mineral deposit in Morris,Illinois,and then spent $45,000 to develop the deposit for exploitation.It was estimated that 690,000 total cubic yards could be extracted economically.During 2016,69,000 cubic yards of minerals were extracted; the minerals have not yet been sold.
Required:
Part a.Compute the amount of depletion expense for 2016.
Part b.Prepare the journal entry to record the 2016 depletion.