On April 2, 2005, Idaho Mining Co. pays $3,633,750 for an ore deposit containing 1,425,000 tons. The
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On April 2, 2005, Idaho Mining Co. pays $3,633,750 for an ore deposit containing 1,425,000 tons. The company installs machinery in the mine costing $171,000, with an estimated seven-year life and no salvage value. The machinery will be abandoned when the ore is completely mined. Idaho began mining on May 1, 2005, and mined and sold 156,200 tons of ore during the remaining eight months of 2005. Prepare the December 31, 2005, entries to record both the ore deposit depletion and the mining machinery depreciation. Mining machinery depreciation should be in proportion to the mine’s depletion.
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Related Book For
Fundamental Accounting Principles
ISBN: 9780072946604
17th Edition
Authors: Kermit D. Larson, John J Wild, Barbara Chiappetta
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