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On 1-1 2021, Mahoney Mining Corp. bought land for 420,000 The residual value of this land is estimated to be 50,000 Development costs related to
On 1-1 2021, Mahoney Mining Corp. bought land for | 420,000 |
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The residual value of this land is estimated to be | 50,000 |
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Development costs related to the project | 140,000 |
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Estimated cost of asset retirement obligation | 20,000 |
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Estimated total tons of ore | 3,000,000 |
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Units of ore extracted during the year | 250,000 |
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Units of ore sold during the year | 225,000 |
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Calculate the depletion base and rate and prepare the journal entry for the year. |
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