Gaspe Mining Corp. bought mineral-bearing land for $600,000 Engineers and geologists estimate that the site will yield 400,000 kilograms of economically removable ore. The land will have a net recoverable value of $80,000 after the ore is removed; this is the combination of site restoration costs and the resale value of the property To work the property, Gaspe built structures and sheds on the site that cost $160.000, these will last 10 years Machinery that cost $144,000 was installed at the mine, and the added cost for installation was $3,000. This machinery should last 15 years like that of the structures, the usefulness of the machinery is confined to these mining operations. For both structures and machinery, dismantling and removal costs when the property has been fully worked will approximately equal the value of the machinery at that time, therefore. Gaspe does not plan to use the structures or the machinery after the minerals have been removed. In the first year, Gaspe removed only 12,000 kilograms of ore, however, production was doubled in the second year. It s expected that all of the removable ore will be extracted within eight years from the start of operations Required Prepare a schedule showing (1) unit and total depletion and depreciation and (2) net book value of the assets for the first and second years of operation. Use the productive output method of depreciation for all assets. (Round intermediate calculations and final answer unit values to two decimal places.) Depreciation Depletion Year Unit Total Book Value Unit Total Book Value Initial Cost 2 References