Recording Entries Related to the Purchase and Depletion of Natural Resources On May, 1, 2020, Star Mines Inc. purchased an ore mine for $5,700,000 to access an estimated 2,954,500 tons of ore. The company incurred development costs of $427,500 related to the mine and purchased equipment for the mine for $855,000 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 $190,000. The company extracted 342,00 tons of ore in 2020 and sold 285,000 tons. a. Record the entry for purchase of the mine and equipment. Assume all purchases were for cash. Account Name Dr. Cr. Mine Property 6,317,500 0 Cash 0 6,317,500 To record purchase of mine Equipment 855,000 Cash 855,000 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 used in your calculations. Account Name Dr. Cr. Inventory--Ore 731,880 0 Mine Property 731,880 To record depletion of ore Cost of Goods Sold 609,900 Inventory--Ore 609,900 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: Do not round until your final answer. Round your final answer to the nearest whole dollar. Account Name Dr. Cr. Depreciation Expense 54,986 X 0 Accumulated Depreciation 54,986 x Check