Question: Midwest Mining Co. purchased for $7 million a mine that is estimated to have 28 million tons of ore and no salvage value . In

Midwest Mining Co. purchased for $7 million a mine that is estimated to have 28 million tons of ore and no salvage value. In the first year, 5 million tons of ore are extracted and sold.
(a) Prepare the journal entry to record depletion expense for the first year.
(b) Show how this mine is reported on the balance sheet at the end of the first year.

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