On january 1, year 1, gemstone mining company (gmc) paid $10,500,000 cash to purchase a stone pit estimated to hold 50,000 tons of useable material. gmc extracted 10,000 tons of stone in year 1. the rights to the surface pit were expected to have a $500,000 salvage value at the end of year 3. based on this information, the journal entry necessary to recognize depletion expense for year 1 is?

Cost of Mining Stone pit = $10,500,000

Salvage value at the end of third year = $500,000

Total expected mining during the life = 50,000 tonnes

Depletion per tonne = (cost - salvage) ÷ total expected mining

                                 = (10,500,000 - 500,000) ÷ 50,000

                                 = $200 per tonne

Stone extracted during the year = 10,000 tonnes

Depletion expense of Year 1 = 10,000 tonnes @ 200 per tonne

                                                = $2,000,000

JOURNAL ENTRY:

Depletion expense A/c  Dr.                        $2,000,000

To  Accumulated Depletion- Mining rights                    $ 2,000,000

(To record depletion expense for Year 1)

answer; competency based pay;

answer; ///(d); determining who competes most closely   with whom evaluating whether industry driving forces and competitive pressure favor some strategic groups and hurt others, and ascertaining whether the profit potential of different strategic groups varies due to the strengths and weaknesses in each groups respective market positions;