Montana Mining Co. pays $4,272,720 for an ore deposit containing 1,485,000 tons. The company installs machinery...

Montana Mining Co. pays $4,272,720 for an ore deposit containing 1,485,000 tons. The company installs machinery in the mine costing $206,200, which will be abandoned when the ore is completely mined. Montana mines and sells 142,000 tons of ore during the year. Prepare 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.)

Expert Solution

ekkarill92 answered 2 years ago

On April 2, 2017, Montana Mining Co. pays $3,497,860 for an ore deposit containing 1,536,000 tons....

On April 2, 2017, Montana Mining Co. pays $3,497,860 for an ore deposit containing 1,536,000 tons. The company installs machinery in the mine costing $161,500, with an estimated seven-year life and no salvage value. The machinery will be abandoned when the ore is completely mined. Montana begins mining on May 1, 2017, and mines and sells 137,700 tons of ore during the remaining eight months of 2017. Prepare the December 31, 2017, entries to record both the ore deposit...

On April 2, 2016, Montana Mining Co. pays $4,161,990 for an ore deposit containing 1,576,000 tons....

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On April 2, 2016, Montana Mining Co. pays $3,059,900 for an ore deposit containing 1,455,000 tons....

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