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  3. perez company acquires an ore mine at a cost of $1

Perez Company acquires an ore mine at a cost of $1,400,000. It incurs additional costs...

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Accounting

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Perez Company acquires an ore mine at a cost of $1,400,000. It incurs additional costs of $400,000 to access the mine, which is estimated to hold 1,000,000 tons of ore. 180,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $200,000. Calculate the depletion expense from the information given. (Round "Depletion per unit" to two decimal places.) Cost Salvage Amount subject to depletion Total units of capacity Depletion per unit Units extracted and sold in period Depletion expense 1. & 2. Prepare the entry to record the cost of the ore mine and year-end adjusting entry Journal entry worksheet Record the cost of the ore mine in cash. Note: Enter debits before credits. 12 of 16 Next >

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