hw 10-5

QS 10-10 Natural resources and depletion LO P3 Perez Company acquires an ore mine at a cost of $3,780,000. It Incurs additional costs of $1,058.400 to access the mine, which Is estimated to hold 2700,000 tons of ore. 265,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore Is removed is $540,000. Calculate the depletion expense from the Information glven. (Round "Depletion per unit" to 3 decimal places.) Cost Salvage Amount subject to depletion Total units of capacity Depletion per unit Units extracted and sold in period Depletion expense 1. & 2 Prepare the entry to record the cost of the ore mine and year-end adjusting entry. View transaction Hst Journal entry worksheet 2 Record the cost of the ore mine in cash Note: Enter debits before credits General Journal Transaction Debit Credit