On April 2, 201.1, Monlana Mining Co. pays $.1,721,000 for an ore deposit conlaining 1,525,000 Ions. 'I'be

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On April 2, 201.1, Monlana Mining Co. pays $.1,721,000 for an ore deposit conlaining 1,525,000 Ions. 'I'be company inslalls niaebinery in (be mine costing $21.1,500, with an eslimaled seven-year life and no .salvage value. I'be niaebinery will be abandoned wben (be ore is coniplelely mined. Monlana begins mining on May I, 2011, and mines and sells 100,200 Ions of ore during die remaining eigbl nionibs of 2013. Prepare (be December 31. 201 1. eniries (o record bolli (be ore deposit deplelion and Ibe mining niaebinery de|)recia(ion. Mining niaebinery deprecialion should be in propoiiion lo die mine’s deplelion.

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