On July 1 of the current year, a company pays $6,948, 480 cash for an ore mine estimated to contain 7,896.000 tons of ore. It installs and pays for machinery costing $1,421,280 cash on July 2. The company removes and sells 407,250 tons of ore during its first six 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. Prepare entries to record.a. purchase of the ore mineb. the cost and installation of machineryc. the first six months' depletion assuming the ore mine has a net salvage value of zero after the ore is minedd. the first six months' depreciation on the machinery.

On July 1 of the current year, a company pays $6,948, 480 cash for an ore mine estimated to contain 7,896.000 tons of ore. It installs and pays for machinery costing $1,421,280 cash on July 2. The company removes and sells 407,250 tons of ore during its first six 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. Prepare entries to record.a. purchase of the ore mineb. the cost and installation of machineryc. the first six months' depletion assuming the ore mine has a net salvage value of zero after the ore is minedd. the first six months' depreciation on the machinery.

Name: None On July 1 of the current year, a company pays $6,948, 480 cash fo
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Description: None On July 1 of the current year, a company pays $6,948, 480 cash for an ore mine estimated tocontain 7,896.000 tons of ore. It installs and pays for machinery costing $1,421, 280 cash onJuly 2. The company removes and sells 407,250 tons of ore dur

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 3CE: A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years....

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