Prepare the journal entry to record depletion

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Question - Grouper Corporation, a publicly traded mining company, acquires a mine at a cost of $630,000. Capitalized development costs total $134,000. After the mine is depleted, $79,500 will be spent to restore the property, after which it can be sold for $162,500. Grouper estimates that 5,000 tonnes of ore can be mined. Assuming that 790 tonnes are extracted in the first year, prepare the journal entry to record depletion.

Reference no: EM132513910

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