1. Naomi Company purchased for $2,500,000 a mine estimated to contain 1,000,000 tons of ore. When the ore is completely extracted, it is expected that the land would be worth $75,000. A building and equipment costing $500,000 were constructed on the mine site. They will be completely used up and have no salvage value when the ore is exhausted. During the first year, 140,000 tons of ore were mined. Required: a. Calculate the depletion cost for the first year. b. Calculate the depreciation expense for the first year.