The company purchased a mining site that will have to be restored to certain specifications when the

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The company purchased a mining site that will have to be restored to certain specifications when the mining production ceases. The cost of the mining site is $800,000, and the restoration cost is expected to be $200,000. It is estimated that the mine will continue in operation for 15 years. The appropriate interest rate is 7%. Make the appropriate journal entries to record the purchase of the mining site and the recognition of the obligation to restore the mining site.

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Intermediate Accounting

ISBN: 978-0324592375

17th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

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