Bering Rock acquires a granite quarry at a cost of $590,000, which is estimated to contain 200,000 tons of granite and is expected to take 6 years to remove. What journal entry would be needed to record the expense for the first year assuming 38,000 tons were removed and sold?
A. Debit Depletion Expense $93,158; credit Accumulated Depletion $93,158.
B. Debit Amortization Expense $112,100; credit Natural Resources $112,100.
C. Debit Depreciation Expense $98,333; credit Accumulated Depreciation $98,333.
D. Debit Depreciation Expense $93,158; credit Accumulated Depreciation $93,158.
E. Debit Depletion Expense $112,100; credit Accumulated Depletion $112,100.
Answer: E
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