paid

$372,800

for the right to extract mineral assets from a

400,000-ton

deposit. In addition to the purchase price,

Sunset

also paid a

$600

filing fee, a

$1,600

license fee to the state of Nevada, and

$65,000

for a geological survey of the property. Because

Sunset

purchased the rights to the minerals only and did not purchase the land, it expects the asset to have zero residual value. During the first year,

Sunset

removed and sold

30,000

tons of the minerals. Make journal entries to record (a) purchase of the minerals (debit Minerals), (b) payment of fees and other costs, and (c) depletion for the first year. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

Begin by journalizing (a) the purchase of the minerals (debit Mineral asset). (Do not record payment for any additional costs associated with the minerals. We will do this in entry b.)

Date			Accounts and Explanation	Debit	Credit
a.