Sands Company Purchased Mining Rights for $500,000

Multiple Choice

Sands Company purchased mining rights for $500,000. It expects to harvest 1 million tons of ore over the next five years. During the current year, Sands mined 350,000 tons of ore. The entry to record the depletion would include a

A) debit to Depletion Expense for $175,000
B) credit to Depletion Expense for $350,000
C) debit to Accumulated Depletion for $175,000
D) credit to Accumulated Depletion for $350,000