$\backslash (!\backslash )$

Required information

Problem $10-7$A $($Algo$)$ Natural resources LO P$3$

$[$The following information applies to the questions displayed below.$]$

On July $23$ of the current year, Dakota Mining Company pays $\backslash$$$8,300,160$ for land estimated to contain $9,432,000$ tons of recoverable ore. It installs and pays for machinery costing $\backslash (\backslash$$ $1,603,440\backslash )$ on July $25.$ The company removes and sells $485,250$ tons of ore during its first five months of operations ending on December $31.$ Depreciation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore is mined.

Problem $10-7$A $($Algo$)$ Part $1-4$

Required:

Prepare entries to record the following.

$($a$)$ The purchase of the land.

$($b$)$ The cost and installation of machinery.

$($c$)$ The first five months' depletion assuming the land has a net salvage value of zero after the ore is mined.

$($d$)$ The first five months' depreciation on the machinery.

Journal entry worksheet $1$

Record the year$-$end adjusting entry for the depletion expense of ore mine.

Note: Enter debits before credits. Required A

Record the first five months' depreciation on the machinery.

Note: Round your "Depreciation per ton" answer to $2$ decimal places and round all other ans

Prepare the journal entry to record depreciation of the machine at December $31.$

Note: Round your "Depreciation per ton" answer to $2$ decimal places and round all other answers to the

Journal entry worksheet

$1$

Record the year$-$end adjusting entry for the depreciation expense of the machinery.

Note: Enter debits before credits. $!$

Required information

Problem $10-7$A $($Algo$)$ Natural resources LO P$3$

$[$The following information applies to the questions displayed below.$]$

On July $23$ of the current year, Dakota Mining Company pays $\backslash (\backslash$$ $8,300,160\backslash )$ for land estimated to contain $9,432,000$ tons of recoverable ore. It installs and pays for machinery costing $\backslash (\backslash$$ $1,603,440\backslash )$ on July $25.$ The company removes and sells $485,250$ tons of ore during its first five months of operations ending on December $31.$ Depreciation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore is mined.

Problem $10-7$A $($Algo$)$ Part $5$

$($e$)$ If the machine will be used at another site when extraction is complete, how would we depreciate this machine?

Depreciated

$\backslash (100\backslash \%\backslash )$ when extraction is complete

over its useful life

under Double$-$declining$-$balance method