Exercise 11-18 (Static) Cost of a natural resource; depletion and depreciation; Chapters 10 and 11 [LO11-2, 11-3] Jackpot Mining Company operates a copper mine in central Montana. The company paid $1,000,000 in 2021 for the mining site and spent an additional $600,000 to prepare the mine for extraction of the copper. After the copper is extracted in approximately four years, the company is required to restore the land to its original condition, including repaving of roads and replacing a greenbelt. The company has provided the following three cash flow possibilities for the restoration costs (FV of $1, PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use approprlate factor(s) from the tables provided.): 1 2 3 Cash Outflow $3ee, eee 4ee, een 600,000 Probability 25% 40% 35% es To aid extraction, Jackpot purchased some new equipment on July 1. 2021, for $120,000. After the copper is removed from this mine. the equipment will be sold for an estimated residual amount of $20,000. There will be no residual value for the copper mine. The credit-adjusted risk-free rate of interest is 10%. The company expects to extract 10 million pounds of copper from the mine. Actual production was 1.6 million pounds in 2021 and 3 million pounds in 2022 Required: 1. Compute depletion and depreciation on the mine and mining equipment for 2021 and 2022. The units-of-production method is used to calculate depreciation. (The expected format for rounding is presented in the appropriate rows of the table. Round your final answers to nearest whole dollar.) Q Restoration costs: Cash outflow Probability Probable Restoration Cost S 25% Possibility 1 Possibility 2 Possibility 300.000 400,000 500.000 40% 35% S Table or Calculator function: Saved to calculate depreciation. (The expected format for rounding is presented in the approprlate rows of the answers to nearest whole dollar.) Restoration costs. Cash outflow Probability Probable Restoration Cost $ 300,000 25% Possibility 1 Possibility 2 Possibility 3 400,000 40% 600,000 35% $ 0 Table or Calculator function: n = 4 i = Present value of probable restoration costs Cost of copper mine: Mining site Development cost Restoration cost TE 2021 2022 EFT S 0.0000 Depletion expense (mine): Depletion per pound 6. Pounds extracted Depletion expense Depreciation expense (mining equipment) Depreciation per pound #3) Pounds extracted Depreciation Expense 2021 2022 s 0.00 0 0 Exercise 11-27 (Static) Impairment; property, plant, and equlpment [LO11-8] Chadwick Enterprises, Inc., operates several restaurants throughout the Midwest Three of its restaurants located in the center of a large urban area have experienced declining profits due to declining population. The company's management has decided to test the assets of the restaurants for possible impairment. The relevant information for these assets is presented below. Book value Estimated undiscounted sum of future cash flows Fair value $6.5 million 4.0 million 3.5 million Required: 1. Determine the amount of the impairment loss. 2. Determine the amount of the impairment loss assuming that the estimated undiscounted sum of future cash flows is $6.8 million and fair value is $5 million. (Negetve amounts should be Indicated by a minus sign. Enter your answers in millions rounded to 1 decimal place, (I.e., 3,500,000 should be entered as 5.5)). million 1. Impairment loss 2 impairment loss million