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On January 1, 2013, the Jones-Smith Corp

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On January 1, 2013, the Jones-Smith Corp. acquired a parcel of land for $6,000,000 from which it expects to extract 300,000 tons of coal over the next ten years. Afterwards, the land will be reclaimed at an estimated cost of $650,000 and sold for an estimated $350,000. In 2014, a building was constructed on the mine site for $680,000 with an estimated zero value when mining is completed.
During 2013, 15,000 tons were mined, and in 2014, 19,000 tons were mined. At the beginning of 2014, the amount of ore remaining was revised to 250,000 tons.
Required:
a.Prepare the depletion entry for 2013.
b.Determine the total amount of inventoriable costs to be recorded in 2014.

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