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On April 30, 2019, Qatar Petroleum Company buys an ore mine at a cost of $2,240,000. It incurs additional costs of $627,200 to access the
On April 30, 2019, Qatar Petroleum Company buys an ore mine at a cost of $2,240,000. It incurs additional costs of $627,200 to access the mine, which is estimated to hold 1,600,000 tons of ore. 210,000 tons of ore are mined and sold in 2019. The estimated value of the land after the ore is removed is $320,000. Required: A. Use the given chart to calculate the 2019 depletion expense from the information given. (Round "Depletion per unit" to 3 decimal places.) (Round final answer to the nearest whole dollar.) A. Cost Salvage Amount subject to depletion Total units of capacity Depletion per unit Units extracted and sold in period Depletion expense B. 1) Prepare the journal entry to record the purchase of the ore mine on April 30, 2019. 2) Prepare the year-end adjusting journal entry to record depletion expense on December 31, 2019. View transaction list Journal entry worksheet
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