In March 2021, Tamara Mines Co. purchased a coal mine for $6,000,000. Removable coal is estimated at 1,500,000 tons. Tam
Posted: Thu May 19, 2022 12:17 pm
In March 2021, Tamara Mines Co. purchased a coal mine for
$6,000,000. Removable coal is estimated at 1,500,000 tons. Tamara
is required to restore the land at an estimated cost of $720,000,
and the land should have a value of $630,000. The company incurred
$1,500,000 of development costs preparing the mine for production.
During 2021, 450,000 tons were removed, and 300,000 tons were
sold. The total amount of depletion that Tamara should record
for 2021 is (give the journal entry)
$6,000,000. Removable coal is estimated at 1,500,000 tons. Tamara
is required to restore the land at an estimated cost of $720,000,
and the land should have a value of $630,000. The company incurred
$1,500,000 of development costs preparing the mine for production.
During 2021, 450,000 tons were removed, and 300,000 tons were
sold. The total amount of depletion that Tamara should record
for 2021 is (give the journal entry)