Co. pays $3,721,000 for an ore deposit containing 1,525,000 tons. The company installs machinery in...
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Accounting
Co. pays $3,721,000 for an ore deposit containing 1,525,000 tons. The company installs machinery in the mine costing $213,500, which will be abandoned when the ore is completely mined. Montana mines and sells 166,200 tons of ore during the year. Prepare the year-end entries to record both the ore deposit depletion and the mining machinery depreciation. Mining machinery depreciation should be in proportion to the mines depletion. (Round your unit depreciation and depletion rates to 2 decimal places.)
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