Colorado Mining paid $473,000 to acquire a mine with 43,000 tons of coal reserves. The...
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Accounting
Colorado Mining paid $473,000 to acquire a mine with 43,000 tons of coal reserves. The financial statements model shown on the last tab reflects Colorado Minings financial condition just prior to purchasing the coal reserves. The company extracted 22,575 tons of coal in year 1 and 19,350 tons in year 2.
Required
Compute the depletion charge per unit.
b-1. Compute the depletion expense for years 1 and 2 in a financial statements.
b-2. Record the acquisition of the coal reserves and the depletion expense for years 1 and 2 in a financial statements model.
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