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Question - Welsh Mining Inc. bought a coal mine in January of 2020, at a cost of $3,600,000 with an estimated 1,080,000 tons of coal. Welsh Mining Inc. also incurs costs of $354,000 to develop the area around the site necessary to access the mine.
At the end of 2020, 180,000 tons of coal were mined and 150,000 tons were sold by December 31, 2020.
1. Record the entry for acquisition of the coal mine.
2. Record the entries for depletion and for the cost of the sale of coal in 2020.
In 2020, Down has net income of P 320,000 and pays P 80,000 of dividends. What is the balance in the investment account on Fox's financial records
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