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Steel Rolling Company Purchased a Mine in 2015 for $500,000

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Essay

Steel Rolling Company purchased a mine in 2015 for $500,000 and they estimated that 30,000 tons of iron ore can be extracted from it. It has no residual value. The company has extracted 2,500 tons of ore in 2015. How will the mine be reported on the balance sheet at the end of year 2015?


Definitions:

Unknown Substance

A material or compound whose identity, composition, or properties have not been determined.

Chemical Reaction

A process that involves rearrangement of the molecular or ionic structure of a substance, unlike a physical change that affects its physical properties only.

Products

Substances formed as a result of a chemical reaction.

Chemical Equation

A written representation of a chemical reaction, showing the reactants and products with their respective quantities.

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