Freeport-McMoRan Copper & Gold Inc. is a natural resources company involved in the exploration, development, and extraction of natural resources, with the majority of its resources in Indonesia. Annual revenues exceed $20 billion. Assume that in February 2017, Freeport-McMoRan paid $8,500,000 for a mineral deposit in Indonesia. During March, it spent $635,000 in preparing the deposit for exploitation. It was estimated that 10,500,000 cubic yards could be extracted economically. During 2017, 1,470,000 cubic yards were extracted and sold. During January 2018, the company spent another $75,000 for additional developmental work. After conclusion of the latest work, the estimated remaining recovery was increased to 13,700,000 cubic yards over the remaining life. During 2018, 750,000 cubic yards were extracted.

Required:
	Compute the acquisition cost of the deposit in 2017. Compute the depletion expense for 2017. Compute the carrying amount of the deposit after payment of the January 2018 developmental costs. Compute the depletion expense for 2018. Prepare the journal entries to record the acquisition of the deposit in 2017 and the depletion expense for 2017.