Freeport$-$McMoRan Copper & Gold Incorporated,

headquartered in Phoenix, Arizona, is a leading international

mining company of copper, gold, and molybdenum. Its revenues

were over $$14$ billion in a recent year.

Assume that in February of last year, Freeport$-$McMoRan paid

$$707,000$ for a mineral deposit in Indonesia. During March, it

spent $$101,120$ in preparing the deposit for exploitation. It was

estimated that $908,000$ total cubic yards could be extracted

economically. During last year, $80,000$ cubic yards were

extracted. During January of the current year, the company

spent another $$12,000$ for additional developmental work that

increased the estimated productive capacity of the mineral

deposit.

Required:

Compute the acquisition cost of the deposit in last year.

Compute depletion for last year.

Compute the net book value of the deposit in the current

year after payment of the January developmental costs.