Montana Mining Company pays $3,673,930 for an ore deposit containing 1,466,000 tons. The company installs...
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Montana Mining Company pays $3,673,930 for an ore deposit containing 1,466,000 tons. The company installs machinery in the mine costing $161,400. Both the ore and machinery will have no salvage value after the ore is completely mined. Montana mines and sells 158,700 tons of ore during the year. Prepare the December 31 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
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