3.) Franceour Mining Co. purchased for $7,000,000 a mine that is estimated to have 35,000,000 tons of ore and no salvage value. In the first year, 5,000,000 tons of ore are extracted and sold.

a. Calculate depletion cost per ton. (Round answer to 2 decimal places, e.g. 0.50.)

b. Prepare the journal entry to record depletion expense for the first year. (Round answers to 0 decimal places, e.g. 2,125. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

c. Show how this mine is reported on the balance sheet at the end of the first year.