At the beginning of 2025, Oriole Company acquired a mine for $3,404,400. Of this amount, $123,000...

Transcribed Image Text:

At the beginning of 2025, Oriole Company acquired a mine for $3,404,400. Of this amount, $123,000 was ascribed to the land value and the remaining portion to the minerals in the mine. Surveys conducted by geologists have indicated that approximately 13,110,000 units of ore appear to be in the mine. Oriole incurred $209,100 of development costs associated with this mine prior to any extraction of minerals. It also determined that the fair value of its obligation to prepare the land for an alternative use when all of the mineral has been removed was $49,200. During 2025, 2,627,000 units of ore were extracted and 2,067,000 of these units were sold. Compute the following. At the beginning of 2025, Oriole Company acquired a mine for $3,404,400. Of this amount, $123,000 was ascribed to the land value and the remaining portion to the minerals in the mine. Surveys conducted by geologists have indicated that approximately 13,110,000 units of ore appear to be in the mine. Oriole incurred $209,100 of development costs associated with this mine prior to any extraction of minerals. It also determined that the fair value of its obligation to prepare the land for an alternative use when all of the mineral has been removed was $49,200. During 2025, 2,627,000 units of ore were extracted and 2,067,000 of these units were sold. Compute the following.