Tamarisk Corporation acquires a coal mine at a cost of $464,000. Intangible development costs total $116,000. After extraction has occurred, Tamarisk must restore the property (estimated fair value of the obligation is $92,800), after which it can be sold for $185,600. Tamarisk estimates that 4,640 tons of coal can be extracted. If 812 tons are extracted the first year, prepare the journal entry to record depletion.

Journal Entry

Date          Description                         Debit          Credit  

                Depletion expenses           $85,260

              Accumulated Depletion                          $85,260

Explanation:

Total cost of MIne

Cost of acquisition                     $464,000

intangible development cost       116,000

Obligation cost                               92,800

salvage value                               (185,600)

                                                       487,200

Depletion cost per ton   =  $487,200/4640 tons

                                        =   $105/ton

Depletion expenses for the year = $105 x 812 =  $85,260

its kinda hard to answer this when we dont have all the information that we need.

answer; microeconomics;