Perez Company acquires an ore mine at a cost of $$3,780,000.$ It incurs additional costs of $$1,058,400$ to access the mine, which is

estimated to hold $2,700,000$ tons of ore. $265,000$ tons of ore are mined and sold the first year. The estimated value of the land after

the ore is removed is $$540,000.$ Calculate the depletion expense from the information given.

& $2.$ Prepare the entry to record the cost of the ore mine and year$-$end adjusting entry.

Complete this question by entering your answers in the tabs below.

Depletion

Expense

General

Journal

Calculate the depletion expense from the information given.

Note: Round "Depletion per unit" to $3$ decimal places.