Purchase date: Dec 31, 20

Purchase price: 4000000

Additional expenditures: 5000000

Useful life (years): 18

Total est. output: 2500000

Decommissioning cost: 2750000

Discount rate: 5%

2021 output: 115000

a) Prepare all journal entries for the years ended December 31, 2020 and 2021.

b) The mining operations ceased on December 31, 2034. A total of 2,000,000 ounces were mined at the end of December 31, 2033. A total of 225,000 ounces were mined during the year ended December 31, 2034. Write all journal entries at December 31, 2034.