Colorado Mining paid $$588,000$ to acquire a mine with $49,000$ tons of coal reserves. The financial statements model shown on the last tab reflects Colorado Mining's financial condition just prior to purchasing the coal reserves. The company extracted $25,725$ tons of coal in year $1$ and $22,050$ tons in year $2.$

Required

a$.$ Compute the depletion charge per unit.

b$-1.$ Compute the depletion expense for years $1$ and $2$ in a financial statements.

b$-2.$ Record the acquisition of the coal reserves and the depletion expense for years $1$ and $2$ in a financial statements model.

Complete this question by entering your answers in the tabs below.

Compute the depletion charge per unit.

Depletion charge per unit

per ton.