Calculate the amount of amortization

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Question - On Feb. 1, 2002, Miyasawa Mining Company purchased for $80 million a mine which is estimated to have 250,000 tonnes of ore and a residual value of $3 million. The cost of restoration at the end of the useful life is estimated at $8 million. During the first year, 50,000 tonnes was mined. Calculate the amount of amortization with entry that should be recorded on December 31, 2002 as well as calculate the restoration liability.

Reference no: EM132579487

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