WildhorseLtd. acquired the rights to use 1,500 hectares of land in northern Alberta to mine for uranium. The cost of the land was $90,000, exploration costs were $210,000, and the development costs incurred were $690,000. All of these costs were capitalized. The company estimated that the mine would produce about198,000ounces of uranium. In the first year,24,750ounces were extracted from the mine, of which12,000were sold. At the beginning of year two, the company revised its estimate and determined that the mine would produce a remaining amount of138,600ounces of uranium. In the second year,32,000ounces were extracted from the mine.

Calculate the year two depletion cost.(Round depletion cost per ounce to 2 decimal places, e.g. 1.73 and final answer to 0 decimal places, e.g. 5,125.)

Year 2Depletion Cost$

Prepare the journal entry for the year two depletion cost.(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)