Prepare the journal entry to record depletion

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Problem - Shef?eld Corporation, a publicly traded mining company, acquires a mine at a cost of $600,000. Capitalized development costs total $134,000. After the mine is depleted, $79,500 will be spent to restore the property, alter which it can be sold for $161,000. Sheffield estimates that 5,000 tonnes of ore can be mined. Assuming that 880 tonnes are extracted in the ?rst year, prepare the journal entry to record depletion.

Reference no: EM132917539

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