QS 8-10 Natural resources and depletion LO P3

Perez Company acquires an ore mine at a cost of $1,400,000. It incurs additional costs of $400,000 to access the mine, which is estimated to hold 1,000,000 tons of ore. 180,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $200,000. Calculate the depletion expense from the information given.(Round "Depletion per unit" to two decimal places.)

6 Safari File Edit view History Bookmarks Window Help , 9 LIJ 4,? MEI- Thu'l1219PM Q o 00- LL; a: newconnectmheducatiomcum . ii 5' . Chp s Quick Study 0 Saved Help Save r. em Submn Check my work 4 _- - .- ..-.-._. .----.--- _.._ --...-..-.. _- . - Perez Company acquires an ore mine at a cost of $1,400,000. It incurs additional costs of $400,000 to access the mine, which is estimated to hold 1,000,000 tons of ore. 180,000 tons of ore are mined and sold the rst year. The estimated value of the land after the 12 5 ore is removed is $200,000. Calculate the depletion expense from the information given. (Round "Depletlorl per unit" to two decimal points places.) skipped El Amount subject to depletion eEcok Total units of capacity Depletion per unit g Units extracted and sold in period Depletion expense Ti Reverenees 1. l. 2. Prepare the entry to record the cost of the ore mine and year-end adjusting entry. Journal entry worksheet Record the cost of the are mine in cash, Note: Enter deblts before credlis. 1 M: \"'3'\"