Barton Corporation acquires a coal mine at a cost of $1,500,000. Intangible development costs total...
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Barton Corporation acquires a coal mine at a cost of $1,500,000. Intangible development costs total $360,000. After extraction has occurred, Barton must restore the property (estimated fair value of the obligation is $180,000), after which it can be sold for $510,000. Barton estimates that 6,000 tons of coal can be extracted. Assuming 900 tons are extracted the first year and 600 tons are sold How much is the depletion rate per ton? Prepare the journal entry to record depletion for 2020
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