1. On January 1, 2015 BigDig Mining company purchased a tract of land for $10 million. BigDig plans to mine the land for diamonds and estimates that it will removed 10,000 carats of diamonds from the mine over a period of 7 years. Federal regulations require BigDig to return the land to its original state at the end of the mining operation. BigDig estimates it will cost $2 million to complete this restoration work, and once complete that the land will sell for $2.5 million. Big Dib typically borrows money at 8%. a. Calculate the depletion per carat removed from the mine b. Calculate the accretion expense to be recorded in 2015 c. What is the balance in the ARO Liability account at the end of 2016