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! Required information Problem 8 - 7 A ( Static ) Natural resources LO P 3 [ The following information applies to the questions displayed
Required information Problem A Static Natural resources LO P The following information applies to the questions displayed below. On July of the current year, Dakota Mining Company pays $ for land estimated to contain tons of recoverable ore. It installs and pays for machinery costing $ on July The company removes and sells tons of ore during its first five months of operations ending on December Depreciation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore is mined. Problem A Static Part 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.
Required information
Problem A Static Natural resources LO P
The following information applies to the questions displayed below.
On July of the current year, Dakota Mining Company pays $ for land estimated to contain tons of recoverable ore. It installs and pays for machinery costing $ on July The company removes and sells tons of ore during its first five months of operations ending on December Depreciation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore is mined.
Problem A Static Part
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.
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