Mining Corp acquired a parcel of land for $4,000,000. It was estimated that the property contained 300,000 tons of mineral reserves. Federal law requires that mined properties be restored to a natural condition after mining is completed. It is expected that restoration costs will total $400,000 and that the restored land could be resold for $200,000. During the year, the company extracted 25,000 tons (of which 15,000 tons were sold) of mineral reserves from the property.

1.try to record the purchase (show the cost allocation).

2.What is the depletion amount per ton related to the mineral reserves acquired (round to 2 decimal points)?

3.What is Mining Corp’s cost of goods sold ($ amount) for the year?

4.Prepare the journal entry(s) related to the extraction and sale.