Ivanhoe mining company purchased land containing an estimated 15 million tons of ore at a cost of $4,710,000. The land without the ore is estimated to be worth $660,000. The company expects to operate the mine for 12 years. Buildings costing $660,000 are erected on the site and are expected to last for 25 years. Equipment costing $345,000 with an estimated life of 15 years is installed. The buildings and the equipment possess no salvage value after the mine is closed. During the year of operations, the mining company mined and sold 4 million tons of ore. Complete the journal entry for depletion charge per ton.
Ivanhoe mining company purchased land containing an estimated 15 million tons of ore at a cost of $4,710,000. The land without the ore is estimated to be worth $660,000. The company expects to operate the mine for 12 years. Buildings costing $660,000 are erected on the site and are expected to last for 25 years. Equipment costing $345,000 with an estimated life of 15 years is installed. The buildings and the equipment possess no salvage value after the mine is closed. During the year of operations, the mining company mined and sold 4 million tons of ore. Complete the journal entry for depletion charge per ton.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ivanhoe mining company purchased land containing an estimated 15 million tons of ore at a cost of $4,710,000. The land without the ore is estimated to be worth $660,000. The company expects to operate the mine for 12 years. Buildings costing $660,000 are erected on the site and are expected to last for 25 years. Equipment costing $345,000 with an estimated life of 15 years is installed. The buildings and the equipment possess no salvage value after the mine is closed. During the year of operations, the mining company mined and sold 4 million tons of ore. Complete the
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