On January 1, 2011, Sobel Holding Corporation purchased a coal mine for cash, having taken into consideration the favorable tax consequences and the inevitable energy crunch in the future. Sobel paid $1,125,000 for the mine. Shortly before the purchase, an engineer estimated that there were 180,000 tons of coal in the mine.

1. Record the purchase of the mine on January 1, 2011.

2. Record the depletion expense for 2011, assuming that 40,000 tons of coal were mined during the year.

3. Assume that on January 1, 2012, the company received a new estimate that the mine now contained 215,000 tons of coal. Record the entry (if any) to show the change in estimate.

4. Record the depletion expense for 2012, assuming that another 40,000 tons of coal were mined.