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Required information

Problem $8-7$A $($Static$)$ Natural resources LO P$3$

$[$The following information applies to the questions displayed below.$]$

On July $23$ of the current year, Dakota Mining Company pays $$4,715,000$ for land estimated to contain $5,125,000$ tons of recoverable ore. It installs and pays for machinery costing $$410,000$ on July $25.$ The company removes and sells $480,000$ tons of ore during its first five months of operations ending on December $31.$ Depreciation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore is mined.

Problem $8-7$A $($Static$)$ Part $1-4$

Required:

Prepare entries to record the following.

$($a$)$ The purchase of the land.

$($b$)$ The cost and installation of machinery.

$($c$)$ The first five months' depletion assuming the land has a net salvage value of zero after the ore is mined.

$($d$)$ The first five months' depreciation on the machinery.