Question: Extract Corporation a publicly traded mining company acquires a mine
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.
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