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In 2024 , the Marion Company purchased land contalning a mineral mine for $1,950,000. Additional costs of $792,000 were Incurred to develop the mIne. Geologists
In 2024 , the Marion Company purchased land contalning a mineral mine for $1,950,000. Additional costs of $792,000 were Incurred to develop the mIne. Geologists estimated that 470,000 tons of ore would be extracted. After the ore Is removed, the land will have a resale value of $110,000. To ald In the extraction, Marion bult varlous structures and small storage bulldings on the site at a cost of $192,700. These structures have a useful life of 10 years. The structures cannot be moved after the ore has been removed and will be left at the site. In addition, new equipment costing $84,900 was purchased and installed at the site. Marlon does not plan to move the equipment to another site, but estimates that It can be sold at auction for $5,000 after the mInIng project is completed. In 2024,57,000 tons of ore were extracted and sold. In 2025 , the estimate of total tons of ore In the mine was revised from 470,000 to 557,500 . During 2025,87,000 tons were extracted, of which 67,000 tons were sold. Required: 1. Compute depletion and depreclation of the mine and the mInIng facillties and equipment for 2024 and 2025 . Marion uses the units-of-production method to determine depreclation on mining facilities and equipment. 2. Compute the book value of the mineral mine, structures, and equipment as of December 31, 2025. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Compute depletion and depreciation of the mine and the mining facilities and equipment for 2024 and 2025. Marion uses the units-of-production method to determine depreciation on mining facilities and equipment. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar
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