In 2010, Sunland Company purchased a tract of land as a possible future plant site....
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Accounting
In 2010, Sunland Company purchased a tract of land as a possible future plant site. In January, 2018, valuable sulphur deposits were discovered on adjoining property and Sunland Company immediately began explorations on its property. In December, 2018, after incurring $491000 in exploration costs, which were accumulated in an expense account, Sunland discovered sulphur deposits appraised at $2610000 more than the value of the land. To record the discovery of the deposits, Sunland should A) debit $2610000 to an asset account.
B) make no entry.
C) debit $491000 to an asset account.
D) debit $3101000 to an asset account.
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