Everly Corporation acquires a coal mine at a cost of $479,200. Intangible development costs total $119,800. After extraction has occurred, Everly must restore the property (estimated fair value of the obligation is $95,840), after which it can be sold for $191,680. Everly estimates that 4,792 tons of coal can be extracted. If 839 tons are extracted the first year, prepare the journal entry to record depletion.
Required:
a. Restoration costs Inventory Accumulated depletion Development costs.
b. Restoration costs Development costs Accumulated depletion Inventory
