Question: Barrick Gold Corporation purchased mineral rights for a gold mine

Barrick Gold Corporation purchased mineral rights for a gold mine in Peru on October 1, 2014, by paying cash of $5,000,000 and incurring a long-term note payable for the $30,000,000 balance. Barrick also paid $4,000,000 cash for water rights needed to mine the gold. Barrick is planning to mine this area for 10 years. Record the purchase of the mineral rights and water rights on October 1, 2014, and the amortization on December 31, 2014, Barrickā€™s year-end. Assume Barrick uses the straight-line method to amortize intangibles.


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  • CreatedJanuary 08, 2015
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