ELB Mining Company paid $200,000 for the rights to mine lead in southeast Missouri. The cost to drill and erect a mine shaft was $2,400,000, and equipment to process the lead ore before shipment to the smelter was $1,800,000. The mine is expected to yield 2,000,000 tons of ore during the five years it is expected to be operating. The equipment has an estimated residual value of $150,000 when mining is concluded. The mine started operations on April 30, 2016. In 2016, 300,000 tons of ore were extracted, and in 2017, 700,000 tons were mined.

Required: Compute depletion and depreciation for 2016 and 2017.

LFB Manufacturing Co. purchased equipment on January 1, 2014, at a cost of $90,000. Straight-line depreciation for 2014 and 2015 was based on an estimated eight-year life and $2,000 estimated residual value. In 2016, Daniel revised its estimate and now believes the equipment will have a total service life of only six years, while the residual value remains the same.

Required: Compute depreciation for 2016 and 2017.