LakelandLakeland

Mountain Mining paid

$ 457 comma 400$457,400

for the right to extract mineral assets from a

500 comma 000500,000-ton

deposit. In addition to the purchase price,

LakelandLakeland

also paid a

$ 400$400

filing fee, a

$ 2 comma 200$2,200

license fee to the state ofNevada, and

$ 90 comma 000$90,000

for a geological survey of the property. Because

LakelandLakeland

purchased the rights to the minerals only and did not purchase the land, it expects the asset to have zero residual value. During the firstyear,

LakelandLakeland

removed and sold

70 comma 00070,000

tons of the minerals. Make journal entries to record (a) purchase of the minerals (debit Minerals), (b) payment of fees and other costs, and (c) depletion for the first year.