On February 19 of the current year, Quartzite Co. pays $5,400,000 for land estimated to contain 4 million tons of recoverable ore. It installs and pays for machinery costing $400,000 on March 21. The company removes and sells 254,000 tons of ore during its first nine months of operations ending on December 31. Depreciation of the machinery is in proportion to the mine’s depletion as the machinery will be abandoned after the ore is mined.

Required
Prepare entries to record

(a) The purchase of the land,

(b) The cost and installation of the machinery,

(c) The first nine months’ depletion assuming the land has a net salvage value of zero after the ore is mined,
(d) The first nine months’ depreciation on the machinery.

(e) If the machine will be used at another site when extraction is complete, how would we depreciate this machine?