Question: Diamond Company acquires an ore mine at a cost of $1,300,000. It incurs additional costs of $200,000 to access the mine, which is estimated to hold 500,000 tons of ore. The estimated value of the land after the ore is removed is $150,000.
1. Prepare the entry(ies) to record the cost of the ore mine.
2. Prepare the year-end adjusting entry if 90,000 tons of ore are mined and sold the first year.