The following information applies to the questions displayed below.
On July of the current year, Dakota Mining Company pays $ for land estimated to contain tons of
recoverable ore. It installs and pays for machinery costing $ on July The company removes and sells
tons of ore during its first five months of operations ending on December Depreciation of the machinery is in
proportion to the mine's depletion as the machinery will be abandoned after the ore is mined.
Problem A Algo Part
Required:
Prepare entries to record the following.
a The purchase of the land.
b The cost and installation of machinery.
c The first five months' depletion assuming the land has a net salvage value of zero after the ore is mined.
d The first five months' depreciation on the machinery.
Complete this question by entering your answers in the tabs below.
Record the first five months' depletion assuming the land has a net salvage value of zero after the ore is mined.
Note: Round your "Depletion per ton" answer to decimal places and round all other answers to the nearest whole dollar.
