Kahn Mining Company Purchased a Mine for $60 Million Which

Essay

Kahn Mining Company purchased a mine for $60 million which is estimated to have 250000 tons of ore and a salvage value of $10 million.
(a) In the first year 50000 tons of ore are extracted and sold. Prepare the journal entry to record depletion for the first year.
(b) In the second year 150000 tons of ore are extracted but only 125000 tons are sold. Prepare the journal entry to record depletion for the second year.
(c) What amount and in what account are the tons of ore not sold reported?