Requirements 1. Calculate the acquisition cost of the mineral deposit and record the journal entry for the acquisition in 2024. 2. Record the journal entries for the depletion in 2024 and 2025. 3. What is the carrying value for the mineral deposit on December 31, 2025? 4. Record the journal entry for the additional development cost in 2026. 5. Calculate the depletion for 2026 and record the journal entry for the depletion on December 31, 2026. Minerals Extracted Year Ounces 2024 65,000 2025 97,000 2026 61,000 Hollis purchased a mineral deposit for $825,000 in May, 2024. In June, Hollis spent $75,000 to prepare for the exploitation. The mineral deposit was ready for exploitation on July 1. Hollis estimated 600,000 oz of minerals could be economically extracted and sold. On January 2, 2026, Hollis spent $70,000 for further development. As a result, Hollis estimated an additional 96,250 oz of mineral could be extracted and sold. The amount of mineral extracted for 2024, 2025, and 2026 is as follows. View the minerals extracted. Read the requirements.