51. Z Mining Company paid $300,000 for the rights to drill for natural gas in Northern Pennsylvania. The cost to drill and erect the site was $4,800,000. After drilling is complete the estimated cost to restore the property is $600,000. The equipment to process the gas cost $1,500,000. The site is expected to yield 2,000,000 units during the five years it is expected to be operating. The equipment has an estimated residual value of $300,000 when drilling is concluded. Z's credit adjusted risk free interest rate is 6%. The site started operations on April 30, 2018. In 2018, 400,000 units were extracted, and in 2019, 700,000 units were extracted. Required: 1. Compute the depletion rate and the units-of-production depreciation rate. 2. Compute depletion and depreciation for 2018 and 2019