During a company purchased a mine at a cost of $ The company spent an additional $ getting the mine ready for its intended use. It is estimated that tons of mineral can be removed from the mine and the residual value of the mine will be $ During tons of mineral were removed from the mine and tons were sold.
Which of the following statements is correct with respect to the accounting for the mine? Do not round your intermediate calculations.
Multiple Choice
The book value of the mine decreased $ during
The inventory of minerals was $ at December
The cost of goods sold was $
The net income decreased $ as a result of the mining during the year.
