On July 1, 2010, Jenner Inc

question 158

Essay

On July 1, 2010, Jenner Inc. invested $640,000 in a mine estimated to have 800,000 tons of ore of uniform grade. During the last 6 months of 2010, 100,000 tons of or were mined and sold.
Instructions
(a) Prepare the journal entry to record depletion expense.
(b) Assume that the 100,000 tons of ore were mined, but only 85,000 units were sold. How are the costs applicable to the 15,000 unsold units reported?

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Definitions:

Assault

A civil wrong that occurs when one person intentionally and voluntarily places another in fear or apprehension of an immediate, offensive physical harm. Assault does not require actual contact.

Private Nuisance

A nuisance that affects only a single individual or a very limited number of individuals.

Strict-Liability Tort

A civil wrong that occurs when a defendant takes an action that is inherently dangerous and cannot ever be undertaken safely, no matter what precautions the defendant takes. The defendant is liable for the plaintiff’s damages without any requirement that the plaintiff prove that the defendant was negligent.

Intention

The state of having a purpose or plan in mind when doing something.