salter mining company 501071

Salter Mining Company purchased the Northern Tier Mine for $68,000,000 cash. The mine was estimated to contain 7,500,000 tons of ore and to have a residual value of $7,700,000.
During the first year of mining operations at the Northern Tier Mine, 335,000 tons of ore were mined, of which 40,000 tons were sold.

a.
Prepare a journal entry to record depletion during the year. (Round your per tone value to 2 decimal places and final answer to nearest whole number. Omit the “$” sign in your response.)

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b.
Show how the Northern Tier Mine, and its accumulated depletion, would appear in Salter Mining Company’s balancesheet after the first year of operations. (Round your per tone value to 2 decimal places and final answer to nearest whole number. Input all amounts as positive values. Omit the “$” sign in your response.)

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