QS $8-13($Algo$)$ Natural resources and depletion LO P$3$

Perez Company acquires an ore mine at a cost of $$2,380,000.$ It incurs additional costs of $$666,400$ to access the mine, which is estimated to hold $1,700,000$ tons of ore $215,000$ tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $$340,000.$ 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

General

Expense

Journal

Calculate the depletion expense from the information given. $($Round "Depletion per unit" to $3$ decimal places.$)$

$\backslash$table$[[$Cost$],[$Salvage$],[$Amount subject to depletion$],[$Total units of capacity$],[$Depletion per unit$],[$Units extracted and soid in period$],[$Depletion expense$]]$