Question:At the beginning of 2017, Ivanhoe Company, a small private company, acquired a mine for $2,270,000. Of this amount, $150,000 was allocated to the land value and the remaining portion to the minerals in the mine. Surveys conducted by geologists found that approximately 18 million units of ore appear to be in the mine. Ivanhoe had $180,000 of development costs for this mine before any extraction of minerals. It also determined that the fair value of its obligation to prepare the land for an alternative use when all of the minerals have been removed was $40,000. During 2017, 3.3 million units of ore were extracted and 2.50 million of these units were sold.

A) Prepare the required journal entry, if any, for the total amount of depletion for 2017.

Account Titles and Explanation Debit Credit

Account Title $Value

Account Title $Value

Accumulated Depletion $Value