Recording Entries Related to the Purchase and Depletion of Natural Resources On May 1, 2020, Star Mines Inc. purchased an ore mine for $2,400,000 to access an estimated 1,244,000 tons of ore. The company incurred development costs of $180,000 related to the mine and purchased equipment for the mine for $360,000 with a useful life of 8 years. The equipment has no use outside of this mine project. The company is expected to restore the land for alternative uses after mining is complete. The present value of the restoration cost is estimated to be $80,000. The company extracted 144,000 tons of ore in 2020 and sold 120,000 tons. a. Record the entry for purchase of the mine and equipment. Assume all purchases were for cash. Account Name Dr. Cr. To record purchase of mine To record purchase of mine equipment b. Record the entry for (1) depletion of the ore and (2) cost of sale of ore in 2020. Note: Round the depletion rate to two decimals in your calculations, for example, use a depletion rate of 1.42 for 1.424, or 1.43 for 1.425. Account Name Cr. Dr. To record depletion of ore . To record cost of sale of ore c. Record the entry for depreciation of the equipment in 2020 assuming the equipment is depreciated in proportion to the depletion of the mine. Note: Carry all decimals in calculations; round the final answer to the nearest dollar. Account Name Dr. Cr