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Question - Western Mining Inc. acquires a zinc mine in January at a cost of $2,160,000 with an estimated 648,000 tons of zinc. Western Mining Inc. also incurs costs of $243,000 to develop the area around the site necessary to access the mine. The land is estimated to have a value of $135,000 after the zinc is mined. At the end of the year, 97,200 tons of zinc were mined and 87,480 tons were sold by December 31.
Required -
a. Record the entry for acquisition of the zinc mine.
b. Record the entries for depletion and for the cost of the sale of zinc during the year.
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