Montana Mining Co. pays $4,316,450 for an ore deposit containing 1,410,000 tons. The company installs...
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Montana Mining Co. pays $4,316,450 for an ore deposit containing 1,410,000 tons. The company installs machinery in the mine costing $176,800, which will be abandoned when the ore is completely mined. Montana mines and sells 156,900 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 mine's depletion. (Do not round intermediate calculations. Round your final answers to the nearest whole number.) Answer is not complete. No Date General Journal Debit Credit 1 Dec 31 19,674 Depletion expenseMineral deposit Accumulated depletionMineral deposit 4,316,450 X 2 Dec 31 Depreciation expenseMachinery Accumulated depreciation-Machinery
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