In 2016, Montana Mining Inc. purchased property with natural resources for $12,000,000. The property was relatively close to a large city and had an expected residual value of $2,000,000. However, Montana should restore the land after the exhaustion of natural resources. The present value of the asset retirement obligation was $880,000. Montanas usual borrowing cost is 8%.

The following information relates to the use of the property:

A. In 2016, Montana spent $800,000 in development costs and $600,000 in buildings on the property. Montana does not anticipate that the buildings will have any utility after the natural resources are depleted.

B. In 2017 and 2018, $600,000 and $1,600,000, respectively, were spent for additional development on the mine.

C.The tonnage mined and estimated remaining tons for years 2016 to 2020 are as follows:

Year	Tons Extracted	Estimated Tons Remaining
2016	0	5,000,000
2017	1,500,000	3,500,000
2018	1,800,000	2,000,000
2019	1,700,000	900,000
2020	900,000	0

Based on the preceding information, calculate the depletion and depreciation each year from 2017 to 2020.