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Question - Earth's Treasures Mining Co. acquired mineral rights for $45,000,000. The mineral deposit is estimated at 50,000,000 tonnes. During the current year, 12,600,000 tonnes were mined and sold.
a. Determine the amortization rate.
b. Determine the amount of amortization expense for the current year.
c. Journalize the adjusting entry on December 31 to recognize the amortization expense.
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