Salter Mining Company purchased the Northern Tier Mine for $$23$ million cash. The mine was estimated to contain $2\mathrm{.}4$ million tons of ore and to have a residual value of $$1\mathrm{.}7$ million.

During the first year of mining operations at the Northern Tier Mine, $70,000$ tons of ore were mined, of which $56,000$ tons were sold.

Required:

Prepare a journal entry to record depletion during the year.

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.

What amount of depletion computed in part a will be deducted from revenue in the determination of income for the year?

How will the journal entry in part a affect the company$$s current ratio $($its current assets divided by its current liabilities$)?$