Question:Maggie Sharrer Company expects to extract 20 million tons of coal from a mine that cost $12 million. If no salvage value is expected and 2 million tons are mined and sold in the first year, the entry to record depletion will include a:
A debit to Accumulated Depletion of $2,000,000.
B credit to Depletion Expense of $1,200,000.
C debit to Depletion Expense of $1,200,000
D credit to Accumulated Depletion of $2,000,000
+ AnswerC
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