question archive Extract Corporation, a publicly traded mining company, acquires a mine at a cost of $500,000
Extract Corporation, a publicly traded mining company, acquires a mine at a cost of $500,000
Subject:AccountingPrice: Bought3
Extract Corporation, a publicly traded mining company, acquires a mine at a cost of $500,000. Capitalized development costs total $125,000. After the mine is depleted, $75,000 will be spent to restore the property, after which it can be sold for $157,500. Extract estimates that 5,000 tonnes of ore can be mined. Assuming that 900 tonnes are extracted in the first year, prepare the journal entry to record depletion.
