$$

Natural Resources

The Hollister Company acquires a silver mine at the cost of $$1,300,000$ on January $1.$ Along with the purchase price Hollister pays additional costs associated with development of $$50,000.$ Hollister expects the mine will have a salvage value of $$100,000$ once all the silver has been mined. Best estimates are that the mine contains $250,000$ tons of ore.

Required

a$.$ Prepare the entry to record the purchase of the silver mine.

b$.$ Prepare the December $31$ year$-$end adjusting entry to record depletion is $60,000$ tons of ore are mined and all the ore is sold.

c$.$ Prepare the December $31$ year$-$end adjusting entry to record depletion is $60,000$ tons of ore are mined but only $15,000$ tons of the ore are sold.

$\backslash$table$[[$Description$,$Debit,Credit$],[$a$.,$Silver mine,,$,0x,0vv$