Problem

Depletion of natural resources On April 2, 2010, Montana Mining Co. pays $3,721,000 for...

Depletion of natural resources

On April 2, 2010, Montana Mining Co. pays $3,721,000 for an ore deposit containing 1,525,000 tons. The company installs machinery in the mine costing $213,500, with an estimated seven-year life and no salvage value. The machinery will be abandoned when the ore is completely mined. Montana began mining on May 1, 2010, and mined and sold 166,200 tons of ore during the remaining eight months of 2010. Prepare the December 31, 2010, entries to record both the ore deposit depletion and the mining machinery depreciation. Mining machinery depreciation should be figured using the units of production method.

Step-by-Step Solution

Request Professional Solution

Request Solution!

We need at least 10 more requests to produce the solution.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the solution will be notified once they are available.
Add your Solution
Textbook Solutions and Answers Search