All-That-Glitters Mining Company paid $50,750,000 for a parcel of land, including the gold mining rights. In addition, the company spent $7,482,500 to prepare the site for mining operations. It is estimated that the residual value of the asset will be $5,400,000. Geologists estimate the site contains a total of 215,000 ounces of gold.

a. What is the average depletion cost per ounce? Round your answer to the nearest cent. Use rounded answer value for subsequent calculations.

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b. If 15,200 ounces were mined in the first year of operation, what is the amount of the depletion cost?