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Question - Montana Mining Co. pays $4,904,390 for an ore deposit containing 1,522,000 tons. The company installs machinery in the mine costing $154,900, which will be abandoned when the ore is completely mined. Montana mines and sells 132,400 tons of ore during the year.
Make the year-end entries to record both the ore deposit depletion and the mining machinery depreciation. Mining machinery depreciation should be in proportion to the mine's depletion. (Do not round intermediate calculations. Round your final answers to the nearest whole number.)
Record the year-end adjusting entry for the depletion expense of ore mine.
Record the year-end adjusting entry for the depreciation expense of the mining machinery.
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