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.

View Solution:

Sale on SolutionInn
  • CreatedSeptember 18, 2015
  • Files Included
Post your question