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 $800,000 for a mineral deposit in Indonesia. During March, it spent $70,000 in preparing the deposit for exploitation. It was estimated that 1,000,000 total cubic yards could be extractec economically. During last year, 60,000 cubic yards were extracted. During January of the current year, the company spent another $6,000 for additional developmental work that increased the estimated productive capacity of the mineral deposit. Required: 1. Compute the acquisition cost of the deposit in last year. 2. Compute depletion for last year. 3. Compute the net book value of the deposit in the current year after payment of the January developmental costs. Complete this question by entering your answers in the tabs below. Compute the acquisition cost of the deposit in last year. 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 $800,000 for a mineral deposit in Indonesia. During March, it spent $70,000 in preparing the deposit for exploitation. It was estimated that 1,000,000 total cubic yards could be extracted economically. During last year, 60,000 cubic yards were extracted. During January of the current year, the company spent another $6,000 for additional developmental work that increased the estimated productive capacity of the mineral deposit. Required: 1. Compute the acquisition cost of the deposit in last year. 2. Compute depletion for last year. 3. Compute the net book value of the deposit in the current year after payment of the January developmental costs. Complete this question by entering your answers in the tabs below. Compute depletion for last year. Note: Do not round intermediate calculations. 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 $800,000 for a mineral deposit in Indonesia. During March, it spent $70,000 in preparing the deposit for exploitation. It was estimated that 1,000,000 total cubic yards could be extracted economically. During last year, 60,000 cubic yards were extracted. During January of the current year, the company spent another $6,000 for additional developmental work that increased the estimated productive capacity of the mineral deposit. Required: 1. Compute the acquisition cost of the deposit in last year. 2. Compute depletion for last year. 3. Compute the net book value of the deposit in the current year after payment of the January developmental costs. Complete this question by entering your answers in the tabs below. Compute the net book value of the deposit in the current year after payment of the January developmental costs. Note: Do not round intermediate calculations
