Golden Lake Sand and Gravel Golden Lake Sand and Gravel opened a new gravel pit to support highway construction in 2016. During 2017, the following major expenditures were made: Land acquisition 2.500.000 Legal fees to secure mining permits 200.000 Cost of administration building 20.000 Cost of scales 31.00 Kravel sorting and crashing machinery purchased med 150.00 Road construction to access mine arca no use after mining 350.000 The mining started in 2017. It was anticipated that over 3 million tons of gravel would be removed over a 6 year time period. The estimated cost of restoring the land to usable condition six years from now (as required under the mining permit) is estimated at $250,000. Assume an interest rate of 5% annual. It is anticipated that the land could then be sold for $600,000 The administrative building is movable and is expected to be used for 6 years and is expected to have a salvage value of $20,000. The scales and crushing equipment are movable and have 10 year lives with no salvage value. The roads only use is to support mining activities. All depreciable assets use straight- line depreciation At the end of 2018, additional boring tests suggested that there were more reserves than originally estimated. Early in 2019, $360,000 was spent on blasting to increase the amount of gravel to be removed by 500,000 tons The following removal and estimated reserves of gravel apply: Year Granel removed during the year Estimated remaining suvelat year end 2017 700,000 tons 2.400.000 2013 NO. Done 1.800,000 to 2019 700.000 tons 1.500,000 tons 2020 600.000 tons Required: The capitalizable costs by major balance sheet account title on the opening day of mining (January 1, 2017). 2. Depletion and depreciation calculations for 2017 through 2020. Include a calculation of the cost of the gravel per ton. 3. The entry to record depletion and depreciation on December 31, 2017 4. Assume 680,000 tons of gravel were sold in 2017, calculate the cost of goods sold 5. Calculate interest expense for 2018