Question: problem 2 please Problem Two: Cuono Mining Co. purchased for $7 million a mine that is estimated to have $ 28 million tonnes of ore,
Problem Two: Cuono Mining Co. purchased for $7 million a mine that is estimated to have $ 28 million tonnes of ore, a residual value of $500,000 and estimated restoration cost at the end of its useful life of $1 million. In the first year, 6 million tonnes of ore are extracted and sold. a) Prepare the journal entry to record the depletion expense for the first year ended, Dec. 31, 2022. Date Particulars Debit Credit Depletion cost per unit: Total Depletion for the Year: Amount to be allocated to restoration liability: (12)
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