Answer:
a.
1.04 per ton
b.
$32,760,000
c.
Dr. Depletion Expense $32,760,000
Cr. Accumulated Depletion $32,760,000
Explanation:
Depletion is an estimated cost of a natural resource that is extracted. This resource is expensed as the extraction is made.
As per given data
Value of Rights = $494,000,000
Estimated resources = 475,000,000 tons
Resources extracted in the period = 31,500,000 tons
Depletion expense is based on ratio of the amount of extraction in period to the total expected resource.
a.
Depletion Rate = $494,000,000 / 475,000,000 tons = $1.04 per ton
b.
Depletion Expenses = $1.04 x 31,500,000 tons = $32,760,000
c.
Depletion Expense is recorded by the debit entry because the expenses has the debit nature and accumulated depletion is credited because it is an contra asset account which have credit nature.
