Problem 8-7A Natural resources LO P3 On July 23 of the current year, Dakota Mining Co. pays $7,935,600 for land estimated to contain 9,336,000 tons of recoverable ore. It installs machinery costing $2,240,640 that has a 10-year life and no salvage value and is capable of mining the ore deposit in eight years. The machinery is paid for on July 25, seven days before mining operations begin. The company removes and sells 480,750 tons of ore during its first five months of operations ending on December 31. Depreciation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore is mined. Required Prepare entries to record the following. (Do not round your intermediate calculations. Round "Depletion per ton" to two decimal places and round all other answers to the nearest whole dollar.) (a) To record the purchase of the land. (b) To record the cost and installation of machinery (c) To record the first five months' depletion assuming the land has a net salvage value of zero after the ore is mined. (d) To record the first five months' depreciation on the machinery. Required B Required C1 Required C2 Required D1 Required D2 Required A To record the first five months' depletion assuming the land has a net salvage value of zero after the ore is mined Select formula for Units of Production Depletion: Calculate depletion expense: Depletion per ton $ 0.90 Tonnage Depletion expense .0.0. Required A Required C2 Required D1 Required D2 Required B Required C1 To record depletion of the Mineral deposit at December 31 No Date General Journal Debit Credit 1 Dec. 31 Depletion expense-Mineral deposit Accumulated depletion-Mineral deposit Required C1 Required C2 Required D1 Required D2 Required A Required B To record the first five months' depreciation on the machinery. Select formula for Units of Production Depreciation: Calculate Depreciation expense: $ Depreciation per ton 0.14 Tonnage Depreciation expense Required A Required B Required C1 Required C2 Required D1 Required D2 To record depreciation of the machine at December 31 General Journal Debit Credit No Date Depreciation expense-Machinery 1 Dec, 31 9,336,000 Accumulated depreciation-Machinery 9,336,000