Chapter $9$: Lab

$\frac{1\mathrm{.}67}{5}$

Question $5$ of $7$

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Sheridan Mining Company has a December $31$ fiscal year end. The following information relates to its Golden Grove mine:

Sheridan purchased the Golden Grove mine on March $31,2023,$ for $$3\mathrm{.}50$ million cash. On the same day, modernization of the mine was completed at a cash cost of $$269,000.$ It is estimated that this mine will yield $580,000$ tonnes of ore. The mine's estimated residual value is $$260,000.$ Sheridan expects it will extract all the ore, and then close and sell the mine site in four years.

During $2023,$ Sheridan extracted and sold $210,000$ tonnes of ore from the mine.

At the beginning of $2024,$ Sheridan reassessed its estimate of the remaining ore in the mine. Sheridan estimates that there are still $559,625$ tonnes of ore in the mine at January $1,2024.$ The estimated residual value remains at $$260,000.$

During $2024,$ Sheridan extracted and sold $190,000$ tonnes of ore from the mine. Show how the golden grove mine will be reported on Sheridn's decemb

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