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Please answer the question below.
prepare the journal entries for all the following relatedtransaction (all occurring within the current year). Assume alldepletion and amoritization for the full year. Also, assume allpurchases were made with cash.
A. An exploration company purchased land with a valuable oredeposit
Estimated ore available in the deposit(intons) 4,700,000
Acquisitionprice $3,500,000
Residual value of land once ore isfullydepleted $500,000
Ore removed in the current year (intons) 365,000
B. The exploration company developed a high speed drill to usein its explorations.
Economic liffe of the drill (inyears) 5
Costs inccurred in the current year todevelop thedrill $550,000
Attorney fees incured to protect thepatent $15,000
C. The exploration company purchased Goshen Hole Company
Acquisitionprice $3,250,600
Book Value ofGoshen HoleCompany $2,415,960
