Company I purchased a piece of land for its natural resources at a cost of $1,500,000. The land is expected to have a salvage value of $250,000. A lumber expert visited the property and estimated the property to have 500,000 pounds of timber.

The first year, the company logged 350,000 pounds of timber and the second year, another 250,000 pounds of timber were logged. Calculate the depletion expense rate AND calculate the depletion expense the company should recognize in Year 1 and Year 2: