Hello, I need help with the following question(s): Connect xC Chegg Study Order

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Hello, I need help with the following question(s):

Connect xC Chegg Study Order Confi M Inbox-jyarb1019@gmail X CSecure httpsnewconnect.mheducation.comfo/ccthtml Ch 8 Exercises Saved Help Save & Exit Submit Check my work 10 QS 8-10Natural resources and depletion LO P3 Perez Company acquires an ore mine at a cost of $1400,000. It Incurs additional costs of $400,000 to access the mine, which is estimated to hold 1,000,000 tons of ore. 180,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $200,000. Calculate the depletion expense from the information given. (Round "Depletion per unit" to two decimal places.) pcinis eBook Hint Cost Salvage Amount subject to depletion Total units of capacity Depletion per unit Units extracted and sold in period Depletion expense Piint References 1. & 2. Prepare the entry to record the cost of the ore mine and year-end adjusting entry Mc Graw O Type here to search 2-40 PM 7/11/2018

Explanation / Answer

Cost

$ 1,800,000.00

Salvage

$ 200,000.00

Amount subject to depletion

$ 1,600,000.00

Total units of capacity

         1,000,000

Depletion per unit

$ 1.60

Units extracted and sold in period

             180,000

Depletion expense

$ 288,000.00

Transaction

General Journal

Debit

Credit

1

Ore mine

$ 1,800,000.00

Cash

$ 1,800,000.00

2

Depletion expense

$ 288,000.00

Accumulated depletion-Ore mine

$ 288,000.00

Cost

$ 1,800,000.00

Salvage

$ 200,000.00

Amount subject to depletion

$ 1,600,000.00

Total units of capacity

         1,000,000

Depletion per unit

$ 1.60

Units extracted and sold in period

             180,000

Depletion expense

$ 288,000.00

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