Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Montana Mining Company pays $ 4 , 6 9 2 , 2 1 0 for an ore deposit containing 1 , 5 1 9 ,

Montana Mining Company pays $4,692,210 for an ore deposit containing 1,519,000 tons. The company installs machinery in the mine costing $167,500. Both the ore and machinery will have no salvage value after the ore is completely mined. Montana mines and sells 141,900 tons of ore during the year.Prepare the December 31 year-end entries to record both the ore deposit depletion and the mining machinery depreciation. Mining machinery depreciation should be in proportion to the mines depletion.Note: Do not round intermediate calculations. Round your final answers to the nearest whole number.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Financial Accounting And Reporting

Authors: Ciaran Connolly

2nd Edition

0903854724, 978-0903854726

More Books

Students also viewed these Accounting questions