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  • Dec 8, 2011, 11:37 AM
    dakotawolf
    Prepare a journal entry
    Everly Corporation acquires a coal mine at a cost of 400,000. Intangible development costs total 100,000. After extraction has occurred, Everly must resore property (estimated fair value of the obligation is 80,000), after which it can be sold for 160,000. Everly estimates that 4,000 tons of coal can be extracted. If 700 tons are extracted the first year, prepare a journal entry to record depletion

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