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E10-11 Tesoro Mining paid $398,500 for the right to extract mineral assets from a 200,000-ton...

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E10-11 Tesoro Mining paid $398,500 for the right to extract mineral assets from a 200,000-ton mineral deposit. In addition to the purchase price, Tesoro also paid a $500 filing fee, a $1,000 license fee to the state of Colorado, and $60,000 for a geological survey of the property. Because the company purchased the rights to the minerals only, the company expected the asset to have zero residual value when fully depleted. During the first year, Tesoro removed 40,000 tons of the minerals. Make journal entries to record (a) purchase of the minerals (debit Mineral Asset), (b) payment of fees and other costs, and (c) depletion for the first year

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