Colorado Mining paid $$600,000$ to acquire a mine with $40,000$ 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 $15,000$ tons of coal in year $1$ and $18,000$ 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.

Req B$2$

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

Note: In the Cash Flow column, use OA to designate operating activity, IA for investment activity, or FA for financing activity. If the element is not affected leave the cell blank. Enter any decreases to account balances and cash outflows with a minus sign. Round final answers to the nearest whole dollar amount. will require entry.

Compute the depletion charge per unit.

Depletion charge per unit

perton.

Req A

Req B$1$

Req B$2$

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

$\backslash$table$[[,$Depletion Expense$],[$Year $1,],[$Year $2,]]$