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Salter Mining Company purchased the Northern Tier Mine for $ 6 8 million cash. The mine was estimated to contain 4 . 8 9 million
Salter Mining Company purchased the Northern Tier Mine for $ million cash. The mine was estimated to contain million tons of ore and to have a residual value of $ million.
During the first year of mining operations at the Northern Tier Mine, tons of ore were mined, of which tons were sold.
a Prepare a journal entry to record depletion during the year.
b Show how the Northern Tier Mine, and its accumulated depletion, would appear in Salter Mining Company's balance sheet after the first year of operations.
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