Essay
Flossil Fossils Company purchased a tract of land containing coal in 2013 for $20,000,000 and then spent $30,000,000 to get a mine ready for operation.The company estimates that there will be 10,000,000 tons of coal available over the next 10 years.The land has a residual value of $500,000.During 2013,1,000,000 tons of coal were mined.
A) Compute the cost of the natural resource and the depletion rate.
B) Record the jounnal entry for the 2013 depletion.
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Cost of Natural Resource
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Cost of Natural Resource...
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