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On July 1, 2014, ABC Inc. invested $560,000 in a mine estimated to have 800,000 tons of ore of uniform grade. During the last 6
On July 1, 2014, ABC Inc. invested $560,000 in a mine estimated to have 800,000 tons of ore of uniform grade. During the last 6 months of 2014, 100,000 tons of or were mined and sold.
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(a) | Prepare the journal entry to record depletion expense. |
(b) | Assume that the 100,000 tons of ore were mined, but only 85,000 units were sold. How are the costs applicable to the 15,000 unsold units reported? |
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