The Hollister Company acquires a silver mine at the cost of \(\$ 1,300,000\) on January 1. Along with the purchase price Hollister pays additional costs associated with development of \(\$ 50,000\). Hollister expects the mine will have a salvage value of \(\$ 100,000\) once all the silver has been mined. Best estimates are that the mine contains 250,000 tons of ore.
Required

a. Prepare the entry to record the purchase of the silver mine.

b. Prepare the December 31 year-end adjusting entry to record depletion if 60,000 tons of ore are mined and all the ore is sold.

c. Prepare the December 31 year-end adjusting entry to record depletion if 60,000 tons of ore are mined but only 15,000 tons of the ore are sold.